Dear Price Action Traders,
Our Daily Price Action Setup is coming from NZD/USD. We can see that the price has tried to pierce through the 0.7700-level but did not manage to. This level has started to attract some fresh buyers and we can see that from a price action point of view, we have a few confirmations. First of all, yesterday’s session created a daily rejection/ pinbar, but today’s action is disproving this daily candle. We can see a daily bullish-engulfing candle that is a very strong negation of yesterday’s rejection and thus is telling prop traders that a reversal/correction is imminent. On top of that, if we zoom out even more and go to the weekly time frame, we will see that last week’s candle is showing further hesitance for the sellers and that the daily is just confirming this hesitance and making way for some fresh bullish momentum. Although this daily price action setup might come against some traders’ beliefs following the trend (mine as well), it might be a great trading opportunity for establishing a new trend or a correction for the swingtrader. Depending on your trading style and trading discipline, you might want to try entering a long trade at a lower price level of 0.7763 and place your stops below 0.7650. The trading profit should be taken at 0.8000, but open positions might be closed earlier/later if price action indicates so!