Dear Price Action Traders

The trade from last time did not perform that well. One way or another, the loss from this trade was a mere 65 points. What happened from price action point of view was that the majority of buyers get rid of their long positions due to the proximity of the resistance level of 1.5650. The price has found support at around 1.5450 and now is bouncing back up. For now, I prefer not to do anything with this pair and let it find direction. The price action is getting a bit blurred due to the range-trading market conditions, although the bullish tendency looks brighter for me.
On the other side, the price action signal for today is coming from DAX. After a couple of red sessions, it has already found support at 11, 500. The daily candle that formed after bouncing off this level was a bearish rejection candle, which is engulfing the previous day’s candle. This will be perceived by many as a bullish signal and I believe that DAX is going to rise up to at least 11,750 before we see another correction. Therefore, my entry for today is a long at 11,580. The stop should be placed just under 11, 450. The first price target is the level of 11, 700 and then 11, 750. From then on it will really come down to price action.
Happy Trading,
Colibri Trader
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