Dear Daily Price Action Setup Traders,
The trading signal from Monday is still range-bound. GBP/NZD has tested the support level at 2.0100 once again and bounced off. We continue seeing more and more rejections around this level and I do keep my original idea unchanged. I believe that this daily price action setup has been confirmed once again today. That is why, all traders having open long positions in this currency pair should stick to them. Let’s see how price would react with the resistance area above the current price.
Today I am looking at another trading idea. What I do have on mind is EUR/USD. It is showing some signs that it might be ripe for further selling. I am namely looking at the daily price action setup. What I see here is a bullish rejection candle. The price has pierced the 1.2300 level (major support area) and has tested it from below. The result was a rejection candle or a pin bar, which further confirms that the mood in the market is still bearish. Traders should be generally careful around this area, since it is a fresh new low. Nevertheless, I will be looking to probably trade this setup.
What I am planning to do is to short this pair at 1.2250 (ENTRY). My daily price action setup STOP would be placed just above 1.2340. My immediate price target would be 1.2040. Then depending on the price action, it would be 1.1960.