Price Action Forex Trade Setups (London Close) Apr. 4th
Stocks Get Hammered, USD Bloodies Up Majors on Spain Debt Talks, No Fed Intervention
Stocks globally dropped more than 1% after Spanish and Italian auctions brought in less buying then expected and continued worries Spain is becoming the next Greece.
Everything fell against the USD with the Euro being weighted down by Draghi’s comments the EZ outlook is subject to further downside risks at the ECB press conference after holding rates. Gold, Silver and Oil lost heavily against the greenback with Gold barely holding onto $1615 an oz, and Silver struggling to maintain the $31 level. The Dow is down over 155pts or 1.18% and the S&P is off 17.42pts or 1.23%.
GBPUSD – Only One To Hold vs. USD
While all the pairs were running for cover vs. the USD, the Cable seemed to be the only resilient one able to hold its turf against the greenback. While all majors are down for the session vs. the USD, the Pound is right where it started the London session suggesting some strength there. On the 4hr chart, we noticed a pin bar setup which was accompanied on the 1hr chart by a piercing pattern so there definitely was some solid intraday buying off the key 1.5832 level. If price action can clear 1.5900, then we could see a move back towards 1.5950 where sellers may looking to sell any rallies ahead of the BOE Rate Decision tomorrow.
1hr Chart with Piercing Pattern
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