Forex Trade Signals & Setups NY Close – Mar. 21st

EURJPY – 7x Is Not A Charm?

After taking out the yearly highs and climbing for 6 days in a row, it turns out 7x is not a charm as the pair ran into sellers just 12pips shy of the Nov. 2011 swing highs at 111.54.  For the first time in almost a year, price action has formed its first bearish engulfing bar (outside bar) while being above the daily 20ema.  It also turns out this engulfing bar is also a pseudo pin bar as well adding strength to the upside rejection and trap.

Price sold off into the 109.90 prior yearly and swing highs.  Bears will have to break through this to add selling pressure on the pair.  We will look for a pullback and price action triggers into the 111.42 highs to possibly short this pair, looking for a return back to 109.90 and possibly a break down to the 108.15 level which is where the daily 20ema is parked for now.  Unless the bulls come back with a vigor, sellers will likely maintain short-term control of the price action as profit taking from stale longs will likely take place throughout the day with such a bearish close.

engulfing bar forex pin bar strategy price action trading 2ndskiesforex mar 21st

The Forex Market Today:
The Euro dollar ran into a two week high and also prior resistance level while the EURJPY ran into a 5-month peak against the JPY.  Combined selling on the two with worries about Spanish 10Y yields renewing Euro-Zone worries, and a cooling housing market in China all hurt the EURO today.

The other big loser on the day was the Australian dollar which fell 0.3% against the USD today.

Global Markets Today:
Stocks sold off today in medium selling after the US Housing data disappointed with US Home Sales dipping 0.9%.  The DOW ended the day down about 45pts down .34% while oil extended moderate gains to $107 a barrel.

Upcoming Economic Announcements:

NZD Gross Domestic Product (YoY)                                            21.45GMT / 17.45EST
CNY HSBC Flash China Manufacturing PMI                              00.00GMT / 20.00EST
EUR German Purchasing Manager Index Manufacturing       08.30GMT / 04.30EST
CAD Retail Sales (MoM)                                                                12.30GMT / 08.30EST
USD House Price Index (MoM)                                                     14.00GMT / 10.00EST

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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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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

  • KL Wong

    Hi Chris,

    I stay in Asia, I really like your London Close & New York Close trade signal & setup posting. So when i am doing my market analysis in the morning, i can compare my analysis with your opinion. This really a great way of learning.

    Furthermore, all your postings here are great learning material to me in Forex trading.

    Many Thanks,

    KL Wong

    • Hello KL,

      Thanks for the kind words – I am glad you are finding this analysis useful and also enjoying the learning material here.

      Feel free to like/share it to pass it on.

      Kind Regards,
      Chris