Forex Trade Signals and Setups Feb. 29th
GBPJPY – Fresh TKx Has One Hurdle to Go
After forming back to back strong TKx (Tenkan-Kijun Cross) Signals, the pair decided to go for a trifecta which it just formed earlier to close the London session. With the strong bullish price action stopping just shy of the SH (Swing High) from the 26th at 129.76, the pair has formed a flag pattern towards these highs suggesting an upside breakout is more likely.
Notice the chikou span which is just below the prior SH we spoke of with nothing else above in the near term, suggesting price just needs to clear this high and the uptrend will likely resume. Although the kumo ahead is weakening a bit, this is still strong and climbing, suggestive of higher prices. Our upward view would only change should we get a kumo break on the 4hr chart and prices penetrating below 126.50. Until then, we will expect this TKx to play out with a higher rotation in prices should they clear the 129.76 and big figure at 130.00 with upside targets of 130.52 and 131.73.
EURUSD – Trend Breakdown
After maintaining above the 20ema for the last 13 days, the EURUSD has formed a double top selling off aggressively no thanks to Bernanke’s cautious views on the recovery. The pair broke below both the 20ema which was a unique event, along with the key pullback low at 1.3366 falling to settle just above 1.3321 which was a prior SH (Swing High) back on Feb. 9th. We do not suspect intraday traders coming in the london session will be excited about aggressively buying this pair, so we are looking for rotations back into the 1.3366 level and the 20ema for price action triggers to sell the rally. We will target the days lows at 1.3321 and look for a further breakdown to 1.3300 and possibly unwinding to 1.3200 should the sell-off get more aggressive.
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