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Correction Time: 3 Setups To Consider

ByAxiory
AuthorTomasz Wisniewski
Published 06/09/2020, 07:28 AM
Updated 01/03/2021, 09:10 AM

It seems that Tuesday is a correction day. Indices are giving up Monday gains, safe havens are climbing higher and Oil is declining towards the mid-term up trendline. This is perfectly normal and should not ring any bells, at least for now. Today, we will focus on the currency market only. We can see a few setups worth your precious 5 minutes.

We start with the NZD/USD, where in the past few weeks, the price was climbing up like crazy. The upswing stopped this week and the place, where it happened was totally not random. NZD/USD is bouncing from the crucial long-term down trendline. Also, they don’t do it just like that but by creating a great looking shooting star candlestick formation. As long, as we stay below the top of this candle, the sentiment is negative.

Small update about the EUR/PLN, where the price is currently finishing the right shoulder of the inverse head and shoulders pattern. It is all happening on the 4,4, so absolutely crucial support. As long as we stay above, the sentiment is positive. For the legitimate buy signal, we need to see the breakout of the neckline first.

We will finish with the Swiss franc index, which we mentioned yesterday. The price was sharply going lower but we said, that the reversal is very probable, due to the combination of dynamic and horizontal support. CHF Index shows us today that we were right. The price perfectly bounces from those supports and climbs higher. That is an interesting short-term buying opportunity.

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