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Price Action Setups: Changes in the Wind?

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Today was marked by a disappointing NFP print that halted the US Dollars rally across the board. What was more shocking was the fact that the Pound continued to tank despite USD struggles.

On that note, the first pair I want to discuss is EURGBP. I mentioned yesterday that I was going to pass on the bearish pin bar setup because the location just didn’t seem right. Well, good thing I did. The market completely disregarded two key levels as it surged more than 50 pips, which is a big deal for this pair.

So what does this mean for future price action? Is this the start of a bull run?

I’m not ready to go that far. This market still has a lot to prove before I will even consider a long position. The first bit of proof needs to come in the form of holding one of those two key levels as support.

As such I’ll be watching next week to see how the pair reacts to .7967 and .7936.

eurgbp daily forex chart

To switch things up, let’s talk about a market that met a must-hold level this past week – AUDCAD. This intersection of trend line support and former trend line resistance was an area that had to hold for the pair to have any chance of a move higher.

I mentioned this area yesterday and sure enough the pair was able to hang on, just barely though. I’m not overly fond of buying this pair at the moment, although I do think it stands a good chance of seeing 1.025 in the coming days and weeks.

audcad daily forex chart

The next pair is one that has been trading in the same range since the start of the year. NZDCHF has formed a rising channel that has held on both ends multiple times.

nzdchf daily forex chart

While not much to do on the daily chart, today’s price action did form a bullish pin bar from support on the 4 hour chart. There is also the 40 pip gap from July 23rd that has yet to close.

Gaps this large have a tendency to be closed within a fairly short period of time. We’ll find out next week if this one is the rule or the exception to the rule.

nzdchf 4 hour forex chart

AUDUSD analysis

audusd daily forex chart

GBPCHF analysis

gbpchf daily forex chart

 

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