The AUDUSD continued its climb today following yesterday’s inside bar. At the time of this writing, the pair is about 50 pips from the .942 target that we’ve been eyeing all week.
Although the EURNZD chart may look messy (and it is) there have been several pin bars along this down trend over the past several weeks.
Today we had a pin bar form along the same resistance level as the previous two. This is now a sideways market, so any trade setup is a bit riskier compared to that of a trending market like what we’re seeing on the AUDUSD above.
In my opinion the only way to trade a pin bar like this would be to use the 50% retrace entry in order to get the proper risk to reward ratio. Speaking of the 50% entry, take a look at the second EURNZD chart below. It just so happens that the 50% Fibonacci level lines up perfectly with the 1.608 key level.
EURNZD 50% Fibonacci retracement of today’s pin bar – lines up perfectly with our key level.
The USDCHF put in a massive bullish outside bar today. As I mentioned in yesterday’s post, there was a possibility that the lows from March could act as support, and they certainly didn’t disappoint.
There isn’t much to do from here except wait and see what the market brings us in the coming days. In my opinion, a bullish outside bar in this location on the chart doesn’t give reason to believe a rally is in the works. The down trend has been far too strong lately to justify anything of the sort.