Lots of action, action, action today! I think I could write a book about today’s movements and all the potential setups! But I will not to make a choice…
Let us start with…. the Cable! The GBPUSD, made an interesting fall today breaking the daily support line and the previous bottom.
The currency pair could be well set for a short. That would be my Forex tip of the day.
Price action is very bearish on the 4 hour chart and if we close today’s day candle similar to its current state, then that would signal USD strength against its British counterpart.
My line of attack and plan is the following:
1) I will wait for today’s day candle to close
2) Then I will measure how far the close is to today’s low & check if it’s within bottom third of the candle
3) Then check if there is a bearish bear flag chart pattern during the Asian session
4) Then wait for a 1 hour candle stick impulse
5) Enter on open of new candle, with stop above swing high, swing low
With those conditions met in FX movement, I believe there is a high likelihood of going down to the -272 or -618 target at 1.5900 area, and maybe later even lower.
On the other currency pairs we see interesting setups as well.
The AUDUSD is stuck in a triangle and a break north could be violent. A break to the downside might give profit potential as well, but the road down will most likely be a lot bumpier.
There are many support levels that could act up.
The upside seems more likely. The 4 hour chart is showing support as we can see substantial wicks at the bottom. However we have not managed to break the top resistance, so we need to show patience and wait for that break to happen. I will be monitoring the break on the 1 and 4 hour charts, were it to happen.
Otherwise we had some major bounces on the Yen crosses to the upside and good moves down on the GBPAUD, GBPNZD. Nathan managed to buy the AUDJPY at 92.50. The currency only went 6 pips lower than that before it reversed back up. One might wonder if Nathan is actually using a Chrystal ball? In any case a pinbar on the 4 hour chart was noticeable soon after and a nice continuation as well. If you are looking for Forex signals, or for Forex advice, please contact us at Winners Edge Trading to see how we can help you.
There is a chance that the Yen crosses, such as the EURJPY, GBPJPY, and AUDJPY as well are making a correction up before moving down again. However, the JPY trend and power may not and should not be underestimated, so a continuation is just as likely. In the case of the AUDJPY, we definitely have plenty of space to the upside as the break out of the consolidation just occurred.
We see that if Wave A equals Wave C 1 to 1, then price would move to double top at around 105. That is still 1,150 pips higher than current price.
Let us know which currency pair you are looking to trade? For those of you who have read today’s tweet, the EURUSD analysis will follow tmrw! 🙂 Please let us know in the comment section if and where you think the EURUSD will bounce to the upside?
In the meantime, Good day, Good morning, Good evening, and above all, I wish you Good Trading!
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