Forex Trade Signals and Setups Mar. 20th
NZDUSD – Pin bar Signal Plays Out
The Kiwi today fell hard after rejecting off the same key level .8260 that also sent the pair back down to a sub .8100 print. Notice how the forex pin bar strategy formed at the key level giving traders a nice opportunity to get short.
Many of our price action traders got short on this one and pegged well over +100pips with less than a 30pip stop for a 3:1 reward-risk play. We will look for price action triggers off either the .8100 round number or .8060 which is the key swing lows for the last two months so keep your eye on those levels.
Price short term is attempting to build a base, but we’d rather wait for the key levels below before getting long barring any price action setups.
Take a look at my newest article on Pin bar Trading – Price Action Forex Trading with Pin bars
Forex Markets Today:
The USD gained against the antipodean currencies like the Australian and New Zealand Dollar as concerns about Chinese cooling with the housing market caused investors to shed commodity based currencies leaving the Aussie and Kiwi victims. Remember the export market for Australia (iron ore, key metals) and New Zealand (agriculture) is obviously affected by a cooling China, hence why they suffered on the day.
The JPY continues to be sold as it lost ground against the EURO and USD today.
We are looking to buy CAD, EUR or the USD vs. the JPY expecting higher prices.
Global Markets Today (These Are Not The Droids You Are Looking For):
With the situation in Greece still tentative, as apparently the mainstream media has done a good job of brushing this aside as being a done deal and ‘these are not the droids you are looking for’ wave of the hand, the markets seem to have turned their attention to China and all eyes on big red (attention and worry have to go somewhere, along with the need to fill the 24hr news cycle). So any signs of weakness or a slowdown will just throw water on the party which has been the over-exuberant DOW.
As investors flee commodity currencies and gold/silver clean out weak longs (while central banks are buying), we will expect the USD to continue to gain while the JPY continues to lose ground.
Upcoming Economic Announcements:
GBP Bank of England Minutes 09.30GMT / 05.30EST
USD Existing Home Sales 14.00GMT / 10.00EST
NZD Gross Domestic Product 21.45GMT / 17.45EST
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Other Related Articles:
Pinbar Trading – Price Action Forex Trading with Pinbars
What Is Dynamic Support and Resistance?
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