Forex Trade Setups June 22nd
GBPUSD – Can it bounce after the heavy losses intraday?
After the decent rise from the bounce off 1.61 since the 19th, the pair got stuck at 1.6250 and began a really aggressive sell-off with a stiff rejection candle to really start the run. This was followed up by 12 out of 16hrs of straight selling which has now run into a little rejection down below. Is this the short term low in place before the next bounce? It could be, even though its not as long a wick/rejection as the one that started this move but the more telling thing is it faces hurdes at the previous floor of 1.6100 so buyers off this low keep tight stops and be willing to take profit just shy of the 1.61 handle.
DOW – Just when it started to gain some ground…
The index sold off pretty decently shedding 80 or so points. What is most interesting about this move is how it started the day really strong. Comments out of the fed that the recovery is going slower than expected, that the markets should expect no more help from them and they expect things to deteriorate slowly from here (likely an understatement from them since they are generally reserved in making such bearish comments), likely means they are expecting worse times ahead for the US.
This will likely not help the index and could see further selling since it has now rejected off the weekly 20ema twice. A failure to close the week up and strong will likely add pressure on the index and probably help next week to be a down week for the staple index, perhaps sending it to 11600 which was the mid-march weekly low and major swing low so keep your sights on this level if you are bearish.
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