Forex Price Action – Euro Forms Combo Pin Bar + Inside Bar | Sept. 4th

EURUSD
After the false break from last week, the EURUSD has now over the last two days formed an inside bar, with today forming a companion pin bar.  What is interesting about this is how the last two bars are inside the large bar from Friday, but also mostly contained in the rejection area of Friday’s price action.

This is really tricky as now it has today close below the major highs from last week, suggesting downside pressure will likely continue short term.  But from a daily chart, there may be some bulls who take this opportunity to form a higher low and squeeze the bears out.

Although I favor the former scenario, the latter is possible but we’ll likely see more consolidation till the ECB meeting this Thursday.  Short term, bears can sell just near the days highs with stops just above 1.2650 targeting 1.2565 for good R:R.  Bulls will meanwhile want to wait for a breakout above the 1.2650 are before adding longs, or wait for a corrective pullback towards 1.2500 before stepping in.

inside bar + pin bar price action trading 2ndskiesforex.com sept 4th

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Global Market Commentary:
While markets sold off in Europe over concerns about a potential ECB bond buying program, US manufacturing data fell to its largest loss in more than 3yrs suggesting a weak US recovery as the ISM fell below the 50 level suggesting contraction.

Euro longs were pared as traders await the ECB rate decision this Thursday to see if more monetary easing is in the pipeline.

Volumes were thin, but Gold climbed mildly to $1696 on the day while the big loser on the day was the AUDUSD which sold off about 60pips to 1.0221 making new lows for the last 30 days.

Upcoming Economic Announcements:

AUD AiG Performance of Service Index 23.30GMT 19.30EST
AUD Gross Domestic Product (YoY) 01.30GMT 21.30EST
CNY HSBC Services PMI 02.30GMT 22.30EST
EUR German Purchasing Manager Index Services 07.55GMT 03.55EST
GBP Purchasing Manager Index Services 08.30GMT 04.30EST
EUR Euro-Zone Retail Sales (YoY) 09.00GMT 05.00EST
CAD Bank of Canada Rate Decision 13.00GMT 09.00EST

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Buddhist, Trader and Philanthropist

I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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  • DV

    I totally agree Chris,
    I was trying to get short 1.2642 last week and missed it by 5 pips, looking at it this morning (NZ time) I might have a go around the intraday highs, I am bullish longer term to 1.32ish but want to short it short term and then build a long position a bit lower which would be a weekly Inverted H&S

    Thanks for your posts really enjoy them! (and enjoy them even more when they are similar to my views!)

    Cheers
    DV

  • Rany

    Thanks Chris for your useful and educational posts , May I ask you what MT4 Time you Use ?

    • Hello Rany,

      Glad you enjoy these posts.

      I don’t use MT4 for my charting. I use intellicharts for my charting. The daily candles for this start at the NY Close.

      Hope this helps.

      Kind Regards,
      Chris

      • Rany

        Thanks Chris , Yes it’s Great Help

  • Nikos

    Hi Chris, Thank you for your daily technical analysis, always genuine and in depth that realy helps.I would like to ask you if you can write something about how to trade with Bollinger bands cause you mention once its an indi that you can measure volatility plus has this 20 ema built in that you like to use it for signals. So have you got a system or a way to trade it effectivelly?

    Regards

    • Hello Nikos,

      I have a video which gives some hints about how I would use bollinger bands which you can check out in my forex videos section. Currently, I do not use them for trading, but have considered building a system for those that like to trade with indicators.

      Perhaps down the line, but there are ways to measure volatility without the BB’s just through price action which I teach in my Price Action Course.

      Hope this helps.

      Kind Regards,
      Chris