Good morning folks, seems like it’s another day where price action is going against us sadly. Let’s hope our trades reach their profit targets.
I’ll start by mentioning a pair I won’t be trading since it’s currently forming a script candle which may give the opportunity to go long in 2 hours.
The area of demand was created after the breakout of a wedge pattern, the current daily price action is slowly falling into a wedge like pattern, quite similar to what we saw mid September till late November. At that time the price did move higher.
As you can probably imagine, I do like this daily set-up, it even has a rather clean weekly stack.
However, was I dislike is how slanted the price action has been on the 4 hour, I know from my backtest that slanted price action doesn’t give me good results so I’ll stay out from the market. It’s that simple 🙂
Euro Aussie is worth mentioning for a potential long play over the next few days, we are approaching and area of demand dating back to 2018. This trendline break was extremely clear. The main issue with this level is that there had been two zones of S/D before hand in the same area, so it is possible that the zone is no longer used.
There is not weekly stack, and the monthly stack does drastically reduce the area of interest but I believe it’s worth keeping our eyes out for this pair.
Aussie Swiss is also worth mentioning it’s approaching an area of supply that was created by a counter zone, there’s a weekly stack if we are willing to use two weekly candles (which I am).
The daily seems happy to take its time to reach the area of value so let’s be patient 🙂
Another zone dating back from early 2018 for us, we are so lucky 🙂
Let’s see if there’s still some interest in this area or will the price push to the highs of 2018?
We’re currently in the zone so let’s wait and see what type of price action it gives us, there’s no weekly stack but there’s a gorgeous monthly stack so let’s be patient 🙂
Keeping my favorite one for last this time and it’s Dollar Canadian – we’ve seen a wedge pattern take place over the last three month followed by a break higher which created a clear area of demand.
There’s an old weekly stack that is valid, we are at the lows since 2019 and it’s forming a rather lovely double bottom pattern on the daily.
On the 4hour chart we have a nice leg down, something that is a lot more reliable than the slanted price action on EUR/GBP.
Let’s see what happens!