Forex Trade Signals and Setups Oct. 31st

EURUSD – Did Reality Set In?
After three days of knocking on 1.3950, the EURUSD broke through the upside barriers with vigor, climbing 300pips in a matter of 16hrs. But then, it ran into resistance at 1.4250 where it triggered a pinbar signal. This gave our traders a great setup to short the pair with an almost 3-1 R:R.  Perhaps this was the coup-de-grace, or perhaps people woke up to reality about what’s going on in Europe.  Although we understand the politicians have to bring confidence that the region will not collapse, they appear to have become dealers of ‘hopium’ and living in an altered state of reality.  This is what happens when you have politicians making critical financial decisions while trying to figure out how to get re-elected (as the two often do not go hand in hand).

Be that as it may, price action has been super aggressive once liquidity returned and the selling began to start the week.  The 20ema held upside advances once broken and selling actually got more aggressive with each subsequent candle communicating the selling was increasing. 1.3800 is critical to the downside and a break here suggests 1.3685 will come under attack quickly.  Pullbacks to 1.4000 become possible rally points to sell into strength.

AUDUSD – Kijun Holding…For Now
One of the stronger pairs as of late, the AUDUSD has been climbing nicely, especially after the TKx Signal which our traders did quite well on climbing over +500pips since being triggered.  The Kijun has held three pullbacks so far but is looking more vulnerable this time. Why?

Well, for starters, the last bounce off the Kijun found the Tenkan as resistance which is generally not a good sign for the bulls.  Second, there is a Kumo Window coming up suggesting if the pair is going to break, now is the best time.

Watch 1.0330 and 1.0300 for clues if it will hold. A ny failures below these levels suggest a further unwinding for the pair. For bulls, keep an eye out for a possible upside Tenkan-Kijun cross which will likely precede the next up-leg for the pair

Remember to leave us your comments and also to click the ‘Like’ and ‘Tweet’ buttons below to share it.

For those of you looking to trade Advanced price action, or our Ichimoku Systems, make sure to check out our Advanced Price Action or Advanced Ichimoku Courses where we teach rule-based systems for trading Price Action and Ichimoku Cloud Trading.


Want More? My private members get all my trade ideas & market commentary up to 3x per week. Click here to become a member.

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.

Related Article

  • Andreas

    Looks like AUD/USD did break through after a while and held @ the 38.2% retracement from the oct 4 rally, made another attempt to the upside but is getting rejected off the kumo flat top pretty nicely.. seems a bit unsettling for my taste given all the chaos this week surrounding greece. I’d love to know what you think about the recent price action and where you think prices will be heading. Great setups as always!

    • Hello Andreas,

      Take a look at my most recent article where you can learn to trade this price action from an Ichimoku perspective.

      Hope this helps and as always, welcome your feedback.

      Kind Regards