By David Ruscelli
Today we witnessed a moderate volatility of the dollar, I was not expecting it to happen during the Easter holiday but nevertheless we saw it happen. During the afternoon the data pertaining to US manufacturing index was released and was more negative than expected, this has triggered a sizable sliding of the dollar, we can see it against the yen, as well as with Australian dollar and euro, where the quote has risen near 1,2900, to later land at 1,280.
Forex Trading Pin Bar
There is an interesting opportunity of forex trading in purchasing mode for Australian dollar versus US dollar, we are over a fairly obvious support at 1,0400, there we can observe the formation of a pin bar with fakey that can be traded in several ways, the more conservative way would certainly be at the breakout of the maximum at 1,0430. An equally interesting way, to better the risk reward, would be to go in during a possible retracement with a limit pending order between 1,400 and 1,410. This way, compared to our target 1.0480, we have a very interesting risk reward. If we schedule an entry at breakout instead, we obtain a less interesting risk reward, but we definitely reduce our overall risk, if the price suddenly changes direction we will have lost nothing since our break out pending orderwill not be affected.
Big slide of the dollar against yen, caused by the weakening of the dollar following today’s release of the data regarding US manufacturing, the “platform” at 94,00 we highlighted during the past few days, has been breached by the price, now the analysis is completely different, as of tomorrow we will be looking for trading opportunities in short, at least until the price will remain under this value. In addition to our breach we also have a crossing of mobile averages.
The EUR is catching up on the dollar, a very anomalous day, everyone was predicting calm but even the EUR had a rally for 100 pips…
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