We saw some big drops on a few of the markets last week as I thought we might. Looking at the daily charts, we’re likely to have a continuation of that this week so I’ll go through which ones to watch.
EURJPY – Short
Last week I highlighted EJ but I was looking for an engulf of the level in red below. What we actually saw is price fall heavy from that level. I didn’t look like classic supply in terms of having a small base but it sure acted like it. The path was clear into the level so price fell away easily. There’s some support down below and under that there’s more green candles (profit potential). If price continues to fall and engulf that level then we could have a long ride down.
EURNZD – Long /Short
On EN price is heading towards demand and we’re pretty close to it at the moment. If price continues with red candles into the zone then we’ll look for longs. If the demand level is engulfed however, we’ll look for shorts down to the demand level below. Then price arrives in a decent fashion at the lower demand level, then we’ll look for longs there too.
EURUSD – Short
EU turned just before hitting the supply level I had marked up and has had a substantial drop in price. It’s also engulfed support and there’s profit potential below for continued shorts.
GBPUSD – Short
GU also turned before the supply and fell heavily. Similar to EU, we could see this pair fall further as there is definitely room for it to do so. The initial supply is still marked as we may still have a reaction when price finally does get back to it.
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