Yesterday we had a bearish Pinbar on the daily time frame but its configuration is not something that I would say is a perfect one to give me a strong signal that the price will move down.
Looking at the H4 time frame I see a bearish engulfing bar which has formed after an indecision candle. That suggests the price could move down but for me that engulfing bar is not the perfect one. I like to see engulfing bars covering previous candle highs.
Now the price has bounced from the previous range (area between 1.08275 – 1.08508) but the candle close on the H4 time frame did not close below the previous H4 bearish candle close. It is the candle close which pushed the price below to 1.07825 on the April 22.
For now, the price has stalled and we need to wait and see what the price is going to do so we can decide in which direction to trade.
The price could continue down to 1.07825 and make a pullback before going further down. Also, it can go up and make a bounce from the previous confluence level at 1.09028.
While we have indecision the best thing to do is to wait until the price makes a clear move and gives us a perfect signal to enter and open an order.
It is the price move on Tuesday which will determine the direction for the next two days. We will wait and see what is going to happen with that.
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