Welcome to today’s article!
The EURUSD has made significant up moves today, as expected in my article and Nathan’s video recording yesterday. I myself managed to open a long trade at 1.3375 just before the market started to pick up speed, so I was quite happy with the price and the timing of that trade 🙂
Did you trade the EURUSD today? Your comments are always so much appreciated!
Based on the higher time frames I would not be surprised to see the EURUSD push to even higher price levels.
Today is giving that confirmation. Price action on the 4 hour chart is revealing to us that this zone is indeed a support area.
However, at this point in time, the EURUSD will need to box its way though certain resistance levels at 1.348-1.35 (previous bottom) and 1.357ish (previous top) to be truly in a full scale up mood.
All we have on the 4 hour chart is lower lows and lower highs, so we need to be cautious when approaching those key levels in the market. Once we get higher highs and higher lows, the price action momentum on the 4 hour chart might start to pick up quick.
If that indeed happens, the EURUSD might ready for a continued journey to the upside with 1.37 (bigger top) and 1.385 (many Fib targets) as my targets. Lets keep an eye out for this movement.
In other currencies we can see that the Yen made a decent correction from the 94.50 level which I was discussing in yesterday’s article as well. The USDJPY has moved down 150 pips and I am in a “wait and see” mode with this currency. I am especially interested in:
a) A break of the 94.50 top
b) A retracement lower to the 87 area
The AUDUSD is showing interesting price action signals on the 4 hour chart. We can see bullish engulfing twins at the bottom of quite a decent down move. Price has contiued up after those twins were formed. What is the Aussie doing?
Well the AUDUSD seems to have woken up from its winter sleep! The down move gives good hope that the currency has snapped out of its range. The AUD has been going sideways for months on end and no end seemed in sight.
With current price action, Aussie traders might be more optimistic. Let us dive into the internal fabric of this move.
First of all, the AUDUSD seems to have completed 5 waves down on the 4 hour chart. This could mean that the AUDUSD is prepared to make an ABC correction, after which we might expect yet another 5 wave down sequence.
If we place a Fib retracement level on the 5 wave move down, then a corrective might end anywhere between the 382 or a 618 Fib for example. In that price area we also see tops and bottoms, and sideways congestion. That area is a likely resistance spot, but I will monitor price action for potential reversal back down. The upside might offer some potential as well. I would be looking at potential entries if the price tests the bottom, or if we manage to break the recent high.
Don’t forget to add us on twitter for all the updates! @winnersedgetrad.
[column size=”1-2″ last=”0″ style=”1″]
[column size=”1-2″ last=”1″ style=”2″]
Winner’s Edge Trading, as seen on: