As price started to consolidate at Value Area High and then reject that high multiple times, that gave us a strong bearish bias. Took the short with stops right above that value area high, with targets at prior support levels. +92 pips closed.
Initially, buyers were not able to push price above a value area high. That gives us a "bearish narrative" going into the session. Entry was a bit too early and as a result we were in the red for some time. But the bearish narrative was confirmed later on as buyers tried to break higher again but failed for a second time. This was confirmation to hold the trade...
IT'S VERY IMPORTANT THAT
WE WAIT FOR THE BREAKOUT
OF THIS KEY VALUE AREA.
WE ARE CURRENTLY IN A "NO TRADE ZONE"
UNTIL PRICE BREAKS OUT ABOVE
OR BELOW THE PRICES MENTIONED.
KEEP IN MIND AUDJPY IS OVERALL BULLISH
BUT PRICE IS STUCK AT AN IMPORTANT
LEVEL RIGHT NOW AND A BREAKOUT WILL
DETERMINE THE NEXT TREND MOVE.
EURUSD has been ranging for the past several hours. We just recently saw a move up to the 38.2% Fibonacci Extension level. Seems as if many traders are jumping aboard the bullish wagon, hoping for the extension higher. We need to have more buying activity (momentum) before we move up higher than this level.
Expected re-tracement down towards 1.10405 as we spot a head and shoulders pattern on the daily chart. Fibonacci level of 0.0% has not been re-tested and this currency has shown weak behavior and has been rallying on the short-side. This will remain bearish until we see a break of the daily resistance at 1.14000.