Daily Price Action
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Price Action Setups – Make or Break Time for AUDUSD

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I mentioned AUDNZD in yesterday’s analysis, noting that the pair had broken support. Today we saw the market test the same level, this time as resistance. The result was an inside bar (consolidation) that could prove interesting going into next week.

If the market is able to break yesterday’s low, we might see AUDNZD retesting key support at 1.0535 in the coming weeks.

audnzd daily forex chart

AUDUSD continues to struggle to break key resistance at .942. If the pair can’t close above this level next week, we may be looking at another trend line break similar to last month. In which case we can assume the idea of a ranging market between .922 and .942.

audusd daily forex chart

We’ve been following EURCAD since the bearish pin bar that formed on June 18th. Since that time the market has taken its time as it travels to the next key support at 1.444.

I still like this level as a target, and given today’s bearish inside bar we may get that retest next week.

eurcad daily forex chart

The Forex market is the only place I can think of where disloyalty is a good thing. In other words not getting stuck on the idea that a pair is moving one way or the other – trade what you see, not what you want to see.

I mentioned a few days ago that GBPNZD looked as though it wanted to move higher from the channel bottom. However the next day told the real story.

In the spirit of trading what I see, I’m now favoring this market to the downside since yesterday’s break of support. The market was unable to reclaim lost ground today, forming a bearish inside bar in the process.

If we get a break of yesterday’s low the next stop looks to be the March low around 1.908. Given the fact that 1.936 has acted as support recently, I’d prefer to see a daily close below this level as confirmation that the market is breaking down.

gbpnzd daily forex chart

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Robert says

Hi. Please see the image AUDUSD Daily below. There is a “hanging man” on 6/30/2014. I am waiting for the bar on 7/01/2014 to close (for confirmation purposes). If this bar closes bearish, then it would mean to it would go further south to .93698, if not then to .93206 (both short term swing lows). However, the overall context appears to show the “squeeze” at the resistance (20 EMA carrying the trend from beginning of June to the resistance key level) at .94311. If that is the case, then it would be projected to have a strong breakout to next .96771 level (previous swing high on 10/14 or 10/21/2014). Is this correct? What do you think?

http://snag.gy/qxCoP.jpg

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