Last week in comparison to the previous was rather flat with the market not showing any clear direction. Friday did however produce a large bearish pin bar suggesting the bears seen from the last week of November could be making a return in the coming days/week.
Last weeks price showed a solid rejection of a strong support/resistance area; which can be seen in the chart below.
In early trading last Friday we saw the market once again pushing towards resistance at 1.5500; however as the session progressed we saw the market rejecting this area leading to the large bearish pin bar seen below:
It’s wise to take into consideration the size of Fridays pin bar. A possible entry for shorting this market could be at a 50% retrace of the pin with a stop either at the high of Fridays price or just above our identified resistance area at 1.5500.
The next most obvious level of support comes in at 1.5200 which can be used as an initial profit taking area.
