Four Trade Setups for today: EURUSD hammer at support, USDJPY bearish consolidation breakout , Crude Oil bearish flag break and DAX breaks uptrend structure.
Trade Setup 1: EURUSD Long
EURUSD bullish hammer reversal candlestick pattern at key at descending channel support and the Fibonacci extension for the latest major bullish wave. I am looking for the price to retest the channel resistance as a first target. The setup invalidates if we break back below 1.0269.
Trade Setup 2: USDJPY Short
USDJPY broke of the recent consolidation pattern and probably heading to resume the overall bearish trend that started from 112.40 high. Looking for a test of the major low at 104.65. A more conservative targets start at the 1.271 extension for the latest consolidation at 106.09 and 1.618 extension at 105.21.
Trade Setup 3: Crude Oil Short
I have been bearish crude oil for a while. The recent rally failed to hold above the moving averages 200 and 50, and the price headed back lower. The selloff completed a bearish flag pattern and therefore I expect ultimately to see oil test 50.60 low again.
Trade Setup 4: Stock Indices in General. DAX in Specific.
We had major breakouts yesterday, and the sell off continues today. German DAX has broken below its medium term rising trend line and the 50-days simple moving average. Add to that a break below the latest swing low in the uptrend at 12195, breaking the uptrend structure and suggesting a trend reversal. I would short any upside pullback for a better risk to reward ratio, with a minimum target at 11600.