1.price has been trending up
2. price broke major RES level
3. now price came back and retested the level and put in a major bullish candle
4. price has put in a bullish engulfing taking out 8 hours of downside movement
5. price ready to make a higher high ?
1.EXTREMELY STRONG TREND LINE TOUCH AND BOUNCE OFF SO TREND LINE ACTING AS RES
2. PRICE HAS FOUND CONGESTION ZONE
3. SPINNING TOP FOLLOWED BY BEARISH ENGULFING
4.HUGE SPIKES AND WICKS
5. NO HIGHER HIGH MADE SO READY FOR REVERSAL OR A PULLBACK
6. YESTERDAY DAILY CANDLE CLOSED AS A DOJI
AND TODAYS IS FORMING A BEARISH ENGULFING
So all these signs are...
1. Price has come down to previous RES now acting as support level which has held up well
2. Price has also come down to Trend line which is also acting as support
3. price has bounced of trend line with a bullish engulfing
4. price has been making higher highs and lower highs
possible higher high in play ?
1 Price making lower lows and lower high
2 price broke through strong long term trend line and came back to retest and once again bounced off
3 Daily candle stick looks to be closing as a shooting star to add to bearish movement
My reason behind this setup is quite simple
After break of long term trnd line price has come to a support level which has held up well numerous times in the past and has bounced of the support level
so i believe price will re-test trend line and previos support now playing as RES
There could be alont of selling power after the re test of broken trend line and...
Reason behind this setup AUD/USD has been putting in lower lows and higher lows for a long time in a down trend as a traders we know the trend is your friend after the bounce of trend line with long pin bars and touch of old support now turned res and also if the daily candle closes as a bearish engulfing this would be a great short setup.
Also the close below...
My bias on EUR/JPY is short very simple really not to much behind it but simply lower lows and lower high have been set and we all no that means downtrend so if we get a bearish candle of the trend line i will look to enter short
NEXT TARGET 134.500
STOP LOSS 136.020