Dear traders,

Last time I shared with you trading analysis on GBPJPY.

Price was rejected and continued the uptrend, therefore cancelling my expectations.

Currently the pair is standing higher than where it was located last week.

It has been a very volatile week for the stock market and not so much for the FX markets.

I am looking at a potential short opportunity today.

DAX Trading Analysis 01.02.2021

It looks like DAX is getting ready for a reversal.

There is a major supply zone that was formed one year ago- precisely last February.

The price is showing a bearish engulfing pattern, which formed just below this zone.

I will be waiting for price to come back a bit to the level of 13500.

Then I will be looking for a price action confirmation from the 4H and possibly enter a short trade.

It all depends on the market, but we can also see a reversal from here.

If price does not slow down pace around 13500, then we can expect an upside continuation.

I am still favouring the bears this time, but let’s give Mr. Market the final word.

Happy trading,

Colibri Trader

p.s.

Have you checked my recent article on Price Action Patterns?