I don’t have a favoured direction for this one at the moment. Things should become clearer soon.
I’ve been trading from both sides for decent pips as we rise upwards into a zone that could offer some potential for short selling.
A second overlaying Head and Shoulder pattern is forming, with a chance of a short trade at the right shoulder. I always like to try and catch these, especially if there are fibs and trendlines present to give entry ideas and most importantly to define reasonable risk / stop loss areas, in case the trade is wrong.
The two areas I will be watching are the top trendline (red) around the big fig at 1.5500 – and the 38.2% of the latest swing low from December 2017 to January of this year around 1.5535. Either of these areas would key in with a right shoulder formation, so I will be watching lower timeframe charts ( H1-15M ) for any signs of a turnaround…………….if price were to power on up and above 1.5535 then the trade idea is void and long positions will be considered, targeting the December highs.
EURAUD 4 Hour Chart
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I am thinking about the reverse head & shoulders that could take us back up to 1.56849?
Has to be taken into account ….Hence my view of buying if the short trade levels are breached.
The reason I didn’t mention it is the fact that the inverse is H&S in shape only . The neckline is imperfect .
true but we have a strong euro and a strong bull bar on the GBP/NZD yesterday
that is the daily chart GBP/NZD yesterday posted a pin bar / doji which could mean a price rise?
Yes …Yesterdays close in GBPNZD would have suggested a rise in price today.
I’m watching to see if we can gain much above the January highs …( I’m not in the trade ).
Another candidate for a right shoulder formation and short catch if we don’t 🙂
The pound seems to be consolidating above the 1.42 level against the USD although the GBP/NZD may struggle to get above the high of last Thursday so we could yet see a swing lower but I think we may need to see more bids on the pound.
The weak PMI numbers were not much help!
All food for thought to throw into the mix Johnners -)
You can check out the live news feed feature that Ryan has been working on (if you haven’t already) . He’s doing a great job of posting live up to the minute market moving news data and musings…. Once that gets going I will post some live scalps during the day.
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will do captain
Yes indeed John ,
EUR found a bid in this session. I find it a little surprising post FOMC that the weakness shown immediately after had no real follow through into today ….but there’s still time eh ?