While many markets continue to struggle to hold important levels, and some have broken them, I wanted to take a few minutes to share some of the levels I’m watching at the moment.
Let’s start with EURGBP. This market has been in a strong downtrend since March of this year, giving some cause for concern that this trend is starting to get a little over-extended. Having said that, today’s price action did form a bearish pin bar at resistance.
What would have made this pin bar ideal is if it had formed closer to trend line resistance from March. I’m hesitant on this one as I do think there’s a good chance that the market may take a run at trend line resistance before the potential for a new low.
There’s also the debate about risk to reward, which is just barely a 2R a the moment. I’m going to pass on this one for now but I wanted to point it out as it is a bearish pin bar at resistance and it’s with the trend.
I’m keeping a close eye on the .829 level on CADCHF. As you can see from the chart below, this area represents both trend line support and horizontal support.
Standing aside for now to see if the market can make it to this level and produce some bullish price action to confirm that the level might hold as support.
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