Forex Price Action Setups – EURUSD Pin Bar Rejection – July 17th

EURUSD
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.

pin bar rejection outside bar 2ndskiesforex.com july 17th

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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.

Upcoming Economic Announcements:

GBP Bank of England Minutes 08.30GMT 04.30EST
GBP Jobless Claims Change 08.30GMT 04.30EST
USD Housing Starts 12.30GMT 08.30EST
USD Fed’s Bernanke Gives Semiannual Report to U.S. House 14.00GMT 10.00EST
USD Fed Releases Beige Book Economic Survey 18.00GMT 14.00EST

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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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  • DV4

    Lovin’ it, got long 1.2232 stop 1.2145 looking for some good gains! has a daily harmonic reversal pattern and if week closes bullish above last weeks high then it will be a morning star formation at the end of a 5 swing decline…

    • Hello DV4,

      Not a bad entry at all. Will be interesting to see if the EU can maintain the intraday gains and continue to build more upside.

      Good luck on this one!

      Kind Regards,
      Chris

      • DV4

        Thanks Chris, time will tell.. my targets are quite big so hopefully it plays out ok… short usdchf as well now coming up to major monthly resistance with daily/ 4hr harminoc patterns – I always watch your fxstreet recordings and find them very good – (one of the 3 or 4 people I actually pay attention to), can’t attend live due to living in New Zealand and usually being around 3am in the morning… look forward to hearing from you in a couple of months again…

  • Sarker

    Hi DV4,

    Nice entry.It can be termed as contrarian investing approach.It makes the trader some good profit in short time.

    Thanks