I had this currency pair on my watch list for this week after analysing the WEEKLY chart, and whilst looking through the DAILY time frame I spotted a potential long trade.
I spotted a pattern I have just started to test out, you have 3 bars involved. In this instance we see a good pullback to previous structure, the first bar looks like a potential low test bar,...
EUR/GBP has been in a range since March 2015. Another retest of ~0.7400 at the top of the range and a high test close with oscillator bearish divergence offers a short position in the ranging pattern possibly reaching the bottom of the range at ~0.7000.
entry - below low of high test bar
stop loss - above high of high test bar
target - bottom of the range/support...
USD/SGD exhibits signs of bearish oscillator divergence as confirmed between price action and the Stochastic and RSI indicators. Price closes the day with a high test bar below a level where resistance is present.
entry - below low of high test bar
stop loss - above high of high test bar
target - previous low
Reasons to short USD/NZD:
- high test bar close
- 20 ema rejection and close below
- resistance (~6700)
- downward trend line rejection (third bounce)
- 0.786 Fibonacci level rejection and close below
- Stochastic and RSI hidden bearish divergence
entry - below low of high test bar
stop loss - above high of high test bar
target - previous swing low or lower
Although in a healthy uptrend, USDCAD has run into resistance at ~1.3070 which happens to be a price level on the weekly chart that has previously been tested (as support in April 2004 and resistance in March 2009). Price closed below this level on Friday as a high test bar. Coupled with bearish divergence on the Stochastic and RSI indicator a price action...
