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
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