Hi traders!

USDJPY – Daily TF and we see the bar close yesterday in blue. The bulls might look as if they are winning here but take note that the body is small and we have the bears coming in stronger near 100 psychological price level.20130904-094204.jpg

I wouldn’t go long here and neither would I short. Risk reward not so good.

There is a possibility the pair might retrace today and the bears might come in to make today’s candle close look like an evening star reversal pattern. I am trying to think like a market maker here

So if you are not in the trade yet, I wouldn’t recommend trading this pair just yet.
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EURUSD – On daily TF. The pair glided lower as expected and has gone below the 38.2 fib level. It seems that level never existed! Haha

Anyway, I believe that the pair can go lower up to the 50% fib level but I wouldn’t run in and short this pair now just yet.

What I would do here is wait for the pair to retrace back up to the 15 and 21 ema before shorting this pair. For now, just look and observe how this pair performs on a daily basis.

20130904-094229.jpgGBPUSD – On daily TF. The bulls might have won the last two days and the candles closed blue.

But as I have noted yesterday, the bears are trying their best to keep the bulls at bay too. Look at the shadows on these blue candles and the past two days move wasn’t much to applaud to for the bulls.

I believe that the bears will take control of this pair soon. They will come in and try to break the channel to the downside.

38.2 fib level will be the next level to target if that attempt transpires.
20130904-094236.jpgAUDUSD – On the daily TF, we see this pair retracing up and the close of the daily candle yesterday sees strong bullish momentum.

My last post on this pair, stated that I am expecting a bullish move as part of a retracement that can target the 0.91 price area. It has transpired nicely here and we haven’t reached the target price level yet.

Around the 0.91 price level, expect stop hunts above the trendline and a possible move back down as the bears will attempt to take charge again at that level.
20130904-094243.jpgEURAUD – On the daily TF, this pair seems to have formed a double top. Coupled with the fact that we have a bearish looking EURUSD chart I have shown earlier, it seems that this pair is expecting more falls.

Wait for a retracement before entering any shorts my dear traders.

~ Ardy