Dear Price Action Setup Traders
The last FX trade I had from last week was short EUR/USD. It is still showing bearish signs and is slowly testing the support level at 1.2150, getting ready for a new test of the major support level at 1.2050. I believe this might happen before the end of this year. As a rule of a thumb, we have low trading volumes around the holiday season. As I have said in earlier posts, trading around those dates might be riskier than usual, since there is an outflow of volatility, which makes the market more prone to fake moves according to price action. Nevertheless, if you are in a short EUR/USD position, you should keep it running, since there are no signs for a reversal from a daily price action setup point of view.
On the other hand, today I am spotting another daily price action setup from the DAX market. There is a lot of hesitation around the 9800 zone. Price has been playing with this area in the past few sessions. Today, I have seen a bearish rejection ending the trading session with a daily pin bar. This is a clear sign of continuation of the uptrend. It means that the sellers around the 9800 level are exhausted and in their place are coming new buyers… It doesn’t matter what words you are using, but this is definitely a good setup for a long entry. Depending on price action tomorrow, I will consider taking a long trade around 9900 with a stop loss just under the daily low- at 9770. The initial target for this trade should be 10,100. Then it all depends on price action.