2. GBP/USD Recently, resistance has been eye-catching on GBP/USD in the 1.5660 area where price closed off of last week not only rejecting this price proximity but also warding off trend line support that price action broke through in the last week of August. This duo of resistance proposes a price movement to the downside over the coming days. entry - below...
1. EUR/USD EUR/USD rebuffed the ~1.1430 resistance area, the fourth time this year, and the 200 ema closing on Friday as a bearish engulfing bar. A ranging pattern between 1.1430 and 1.0820 is quite apparent. Although it can be argued that signs of an up trend are noticeable since July 2015, a retest of price at the previous low at 1.1080 or trend line in the...
Just an unembellished visual statement of probable impending doom and gloom (or opportunities to sell) in near nascent stages.
Another short set up on AUDUSD since downward momentum on the previous set up (idea linked) failed is on offer. The present set up comes after a deeper pull back, organic in a sense, into the 50 ema which also lines up with a previous level of support (~0.7250), now acting as resistance, and the 0.618 FIbonacci level. Price closed as a high test bar. Oscillator...
On the S&P 500 and NASDAQ100 indices, closing as a high test bar in the resistance zone, and a bearish engulfing bar on the FTSE100 (UK100) stock index, a sell setup is in order suggesting potential bearish continuation on these three (CFD) indices, following the recent sell off on major indices. 1. S&P 500 The rejection/resistance zone on the S&P 500 comprises...
Price is in an aggressive trend on AUD/USD as shown by its location in referece to the moving averages. The present setup takes advantage of this aggressive downtrend backed by a shallow retracement into a previous level where price has found resistance (0.7070). Resistance is also seen at the 8 ema and raised seller interest is evinced by the formation of a high...
Price has pulled back into the declining trend line (on both the weekly and daily chart) where today's bearish engulfing bar is looking to close below the 100 ema. Encountering resistance in the 1170 - 1180 area, price could ricochet off this rejection zone giving short continuation entry on Gold (XAU/USD). entry - below today's engulfing bar stop loss - above...
Taking a long position based on: - bullish/reversal bar - support at ~ 3040, a weekly level; - 200 ema rejection - Fibonacci cluser: -- 0.382 Fibonacci level rejection and close above on weekly time frame -- 50% retracement and close above (2nd swing low to recent high) entry - above high of reversal bar stop loss - below low of reversal bar target -...
With the appearance of Stochastic and RSI bearish divergence on the chart this pair is a bit of a hit-and-miss. However, since price action made a low test bar finding support at ~2.0200 and the rising trendline, and also rejecting the 20 ema there is a possibility of a bullish continuation to rejoin the up trend. entry - above high of low test bar stop loss -...
Although the retracement/pullback on this pair is quite shallow my reasons for taking a long position are: - Bullish/reversal bar following 2 seller bars - Support at 1.3100 with close above - 8 ema rejection/support and close above - 0.382 Fibonacci level rejection and close above - Stochastic and RSI convergence entry - above high of low test bar stop loss -...
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
With the following noted a long scenario appears to be in play: - bullish reversal bar (near resemblance to bullish pin bar/low test bar) - resistance becomes support (at ~2.3260 which stands out as a weekly level dating back to November 2009 ) - retest of 20 ema and close above - trend line support (third touch) - Rejection of 0.618 Fibonacci level and 50%...
Looking at the following to sell EUR/USD: - inside bar - 50 ema rejection - resistance at @1.1100 - Fibonacci cluster: - 0.786 Fibonacci level rejection from previous swing high to swing low and closes below - 50% retracement between first swing high at the top of the trend line and closes below - trend line rejection - Stochastic and RSI convergence entry -...
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...
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...
Using bearish divergence to build a case for reversal trading on USD/CAD with the following favouring a potential short scenario: - resistance (3rd touch) at ~1.2800 - bearish high test close below resistance - price reaches and closes below 1.272 Fibonacci extension level - Stochastic and RSI bearish divergence entry - below low of high test stop loss -...
Seeing today's high test bar close rejecting a past level acting as both support and resistance within close proximity of a Fibonacci cluster (38.2% and 50%) drawn from two previous swing/cycle highs and rejecting the falling trend line for a third time highlights this end of day set up as a potential selling opportunity. Recent lower highs and lower lows...
Technical observations supporting a long trade: bullish low test/reversal pin bar; retest of previous support at 95; and 0.618 Fibonacci retracement and possible close above 50% retracement.