Euro Coiling Inside Bars, Nikkei Buy Setup Profits | Sep 11
EURUSD – Coiling Inside Bars, Likely Next Leg Down
Over the last few days, the Euro has been trying to rally, but ultimately been confined to a range between 1.2880 and 1.2960. You’ll notice on the daily chart below the coiling inside bars, which usually leads to a strong breakout. Considering the trend has been quite bearish, we favor a downside move in the near term. This is supported by the pairs inability to rally and close the opening gap for the week.
Aggressive traders can look to sell towards the consolidation highs around 1.2950/60. More conservative traders can sell on rallies towards 1.3100/25 as most institutional players are holding shorts vs. the Euro right now, with their likely stops placed above 1.3125.
Nikkei 225 – 2nd Pullback Setup Profits
Yesterday in our daily market commentary, we talked about the Nikkei 225 clearing a key range resistance in 15800, and how this offered a great breakout pullback setup to trade with trend. We suggested looking for pullbacks into support, with one of them being the 15800 level.
As you can see from the chart, today the Japanese index pulled right back to this level, where bulls stepped in pushing the pair over 115 points higher. Trading with a simple 30 point stop, you could have profited +3.5R in less than 8 hours, with some of our top traders doing this, so congrats to you.
For now, 15800 is key support short term while 15930 is the short term ceiling for bulls. Beyond this, we have 15981 and then 16060, so still plenty of upside available.
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