Forex Price Action Setups – EURUSD Pin Bar Rejection – July 17th
Yesterday I wrote in my forex market commentary how the Euro had formed an outside bar and a pin bar rejection off the lows, suggesting the short term upside was favored and dips just below the 1.2200 region would be a great place for an intraday buy. This is exactly how it played out as the price dipped 12pips below the 1.22 handle, then bounced to close 105pips higher. Many of my price action traders in the price action course got in on this and made some solid pips with very low risk, many getting over 4-5:1 reward to risk plays forming a daily pin bar rejection.
The pair seems to be underpinned short term so I will keep looking for intraday longs until we see a strong bear candle taking out the lows. Bears can look for longs just under 1.2390 while bulls can take longs around today’s lows with tight stops below.
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Global Market Commentary:
Ben Bernanke spoke today before the Senate Committee painting a bleak picture for the US economy, leaving the door open for QE3, but also saying he is not willing to start the printing press yet (keep in mind, this is an election year).
Regardless, investors took this as a sign he will hit the CTRL+P button soon which lifted risk assets such as the DOW and EURUSD which were up 78pts and 105pips respectively. Meanwhile, Gold dropped about $11 but Asian markets are down solidly heading into the London session open.
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