Dear Daily Price Action Setup Traders
Yesterday’s EUR/USD trading idea gave a good trigger for the day, but profits were shortly closed and the intraday move reversed. This does not mean that the signal is invalidated. I believe traders are waiting for the Wednesday’s FOMC meeting, which would give further fundamental direction to the global financial markets.
Today’s signal is coming from another pair, which gave a bullish signal recently- GBP/CAD. For those of you, who are still in a long position- congratulations. There was no reason to take profits so far. All of the previous 3 candles were bullish. That is one of the main reasons why I do not like to have price targets, since we do not what is going to happen. When we are expecting what the market will say, we will lose money or not take advantage of the full move.
What I can say about today’s session is that we have a bullish rejection. The price did try to test the support at 1.8100, but quickly after that retraced. New buyers joined the old ones and the uptrend was resumed. The daily candle is also a very interesting one. It is a pin bar, that is forming just below the major resistance area. For me that is not an exit signal. Alas, it is a place to add to the existing longs. What this daily price action setup is saying is that the move has not exhausted itself yet. There is more to come and market participants should closely follow what will follow.
For the more aggressive of traders, that is a good entry place for a long position. The parameters of this long would be:
An entry at 1.8209. The stop for this trade should be placed just under the level of 1.8095.