After forming an inverted pin bar on approach to .8000, the Kiwi followed with a large bearish engulfing bar giving a kiss off the round number, then selling off over 140pips for 8hrs straight. This single engulfing bar took out the last three days of gains, reminding us the downside still has far more teeth then the upside.
Being incredibly oversold on the short term after the cliff dive it took today, we expect the pair short term to pullback, possibly into the .7920-40 area before selling off again. Thus, short term to end the week, we are looking to sell on rallies into these areas as long as the price action looks corrective and weak heading into it. …
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