While much of the market waits for the next catalyst I figured we would review two pairs that were discussed recently as well as one pattern that may produce a setup for us soon.
I mentioned the massive bullish pin bar on AUDJPY at the end of last week. If you recall I noted that it might provide us with a valid setup but only if we get the right entry at 50% of the pin bar.
So far the market has held well above the 50% mark which comes in around 94.30. Whether we get that entry is yet to be seen but the market is proving (so far) that it still wants to trade within this narrow range.
Summary: Look for a possible retrace to 50% of Friday’s pin bar with a target of 96.0
AUDNZD is a pair that I’ve had on my radar for a while now as it recently reached key (monthly) support at 1.05. Although support was reached, the market still seems a bit indecisive as to whether or not it wants to move higher.
I’m not so much interested in a short position down here as I do believe that this area holds a lot of buyers. However I am interested in a long position but only if this market can prove that it’s ready.
Summary: Wait for a break and retest of channel resistance to enter long but only with confirming bullish price action.
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