Rationale for taking a short trade on GBP/USD
- down trend (lower highs and lower lows)
- price pulled back into a previous level at 1.5500 and 200 ema, and closed below both thus encountering resistance
- an inside bar formed just below this level of resistance
- in its pull back, price also found trend line resistance (4th retest) and closed below
- oscillator...
0.7225 stands out clearly as a level on the EUR/GBP daily chart where price, it seems, is reacting in a bullish manner today. By day's end, should price close above this level, continuing bullish momentum could ensue. Evidently, this horizontal level, 50 ema and 50% retracement are acting as coalescent support. On the contrary, a close below 0.7225 may have price...
Using the following to back a short entry on EUR/GBP on the daily chart:
- inside bar
- resistance at ~0.7120
- mother candle rejects:
- 50 ema and closes below
- 0.786 Fibonacci level and closes below
- Fibonacci cluster
- falling trend line for the 4th time closing within the downward trend channel
- Stochastic hidden bearish divergence (comparison of...
Similar to AUD/CAD, AUD/CHF is setting up for a short opportunity with the following in view:
- inside bar following high test bar in pull back to 50ema
- price rejection at resistance at ~0.8210
- price retraced to 0.618 Fibonacci level which coordinates well within proximity of resistance at ~0.8210
- Stochastic and RSI in overbought territory
- Stochastic and...
The AUD/JPY daily chart displays consecutive lower highs and lower lows with a potential short setup to continue the visible falling trend (supported also by downward trendline). The current corrective phase seems to be running out of steam in initiation of a potential impulsive phase, with the production of a bearish reversal price bar:
- ricocheting off a...
