As a follow up to yesterday’s bearish pin bar, GBPUSD looked indecisive today. The close didn’t really provide much confirmation for bulls or bears. The market could go either way from here.
However considering that we’re still trading below resistance, I’ll favor the downside until the market can prove otherwise.
USDJPY is starting to gather some serious momentum. I do think the pair will soon see the 103.20 area. The question is, how far will it pull back before the next push higher?
That’s anyone’s guess. But for now there isn’t any price action to indicate timing except for the fact that today appears to have closed above a key level.
Like any other level in the Forex market, there’s always some room for opinion. That’s why it’s always best to treat any “level” as a zone. I have 102.62 marked on my chart whereas another trader might have 102.70, in which case today didn’t close above their resistance level.
We’ll have to see how tomorrow plays out.
I posted this level on NZDUSD earlier today on my social sites (be sure to follow me using the icons on the right). I’ll be watching this level closely over the next few days.
I do think the pair is seeing the start of a larger downtrend so I’m really only interested in bearish setups at this point. The only exception to this might be a huge bullish pin bar as there does seem to be some room to the upside before the next move lower.
We’ll have to remain patient for now.
Here’s an interesting level on AUDCAD to keep an eye on this week. Today’s close was fairly bullish, so I won’t be entering any short position until we get a convincing bearish setup on the daily or 4 hour chart.
