Dear Daily Price Action Setup Traders
Last week was not empty of events, but at the same time, I couldn’t see a lot of great daily price action setups. I had a daily price action setup coming from EUR/USD, but in the end did not receive a great confirmation from the intraday action of this pair, as I have written in this article. The second trade that I had was coming from AUD/USD. If you have followed my trading idea, you probably were stopped out. There was a bullish rejection in a bearish trend, which gave this signal. Unfortunately, there was a bearish rejection, as well that formed on next day. This negated the signal from the previous day and it was reasonable to exit all short trades. If you have done that, you probably did not lose any money. Otherwise, if you have let your order to be stopped out- that was correct, as well. You should look at trading as the next 100/1000 trades and a losers are just part of the game.
Now, about today’s daily price action setup. I have been looking at a currency pair, which finally is giving some positive signs of a reversal. I am looking that NZD/USD is getting some consecutive bearish rejections, which might mean just one thing- an imminent reversal/correction. First, we saw one rejection just above the 0.7600 area. Then, there was a morning star reversal candlestick pattern that formed on the daily time frame. In the next three sessions, there were two bearish rejections, which is giving me green light for a long entry.
Therefore, today’s daily price action setup is for a long trade. You can either wait for a small correction towards 0.7780 or go into a long trade right away. The stop for this trade should be placed under the previous rejection at 0.7700. The first target is the next resistance level at 0.8000 and then 0.8100. If this is a major reversal, we might expect a big move in the weeks to follow.