AUDCHF Daily Chart
Watching for Break, Re-test and Reversal
In last week’s price action trade ideas we were looking to see if price would make a move lower and take out the major daily support.
Price in the last session began to make a move through this level, and whilst this has not been aggressive, we can now watch the intraday charts to see if price action will hold as a new price flip and old support / new resistance are established.
Potential short trades could be hunted on smaller time frames at this level looking for A+ high probability triggers that confirm price is looking to reverse at this level.
Daily Chart
NZDJPY Daily Chart
False Break Engulfing Bar
Price on the NZDJPY daily chart made a large attempt at breaking out higher and through the daily resistance level in last week’s trading.
Instead of breaking out higher, however, price ended up forming a false break bearish engulfing bar and snapping back lower.
A break higher could have seen the price move out and away from the tight sideways box in which it now finds itself stuck. Near term support is not far away and looking to make trades whilst price stays within this tight range looks tricky.
Daily Chart
CADJPY Daily and 4 Hour Chart
Can Price Slide Into New Resistance?
At the end of last week, price broke out and through the major daily support level aggressively to open up potential short trades.
In recent weeks we have seen price in this market make consecutive lower highs and now break a major support level looking to form a potential new short-term trend lower.
If price can slide higher and back into the overhead resistance, traders could watch to see if it will hold as a new resistance level and a potential area to target short trades.
Daily Chart
4 Hour Chart
US500 Daily and 4 hour Charts
Still Uncertain at Major Daily Level
This is a market we have been discussing a lot about recently as quite a lot has been happening on the charts.
In last week’s commentary we were looking to see if price would break out higher and open the door for any bullish traders to get long.
Whilst it did make a break higher, fire a quick re-test and form a 4 hour bullish engulfing bar sending it again higher, this move has been relatively short-lived.
As shown on the daily chart below; the US benchmark is now once again right back at the major daily level and making another test which looks to be crucial for where it may go in the coming sessions.
Daily Chart
4 Hour Chart
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