The just ended trading week was that superb one where all trade ideas agreed with the analysis. The bulls won in all the three pairs as forecasted. This fresh trading week is also coming up with more favorable setups. Hopefully, this one promises to be a good week and end on a great note as well. The pairs for this week are also giving off bullish signs as well. Aside EURUSD a few JPY pairs are in focus.
The charts in focus for this week are EURUSD, EURJPY, GBPJPY and CADJPY.
As at now, the EURUSD that has been not analyzable for me this year so far, seems to have finally come alive. It looks like the bulls are about to go for a jolly ride as with the current market structure. Since the mid of 2018, this pair has lost more than a 1000 pips. The big fall started to be choppy in the beginning of this year and metamorphosed into a descending channel.
Even then, it made a couple of false breaks to the upside. It has finally broken free from the channel resistance. The bulls have gathered the needed momentum to the upside so I will look forward to buying as long as EURUSD remains above the resistance level.
This pair has also seen bearish momentum from April 2019; It has also broken free from a descending channel resistance. This formation looks rather good in the 4hour timeframe, unlike the EURUSD which is from the Daily timeframe. EURO correlation comes in play here; I’m bullish this pair as well if it manages to remain above the resistance level. A retest of the resistance as new support is also another instance. The only downside is a false break.
The super bearish British Pound which has been fueled by political uncertainties might be able to see some light this week. It has been down since early May 2019 and the trend lower since then has presented us with a wedge. It is a falling wedge actually, and the interesting thing is that, it broke and retested the wedge resistance as new support before the week ended. Although I am bullish this pair, the uncertainties surrounding the Pound might not make it the strongest bull.
The forecast on the CADJPY is currently just a heads up. It has been in a downtrend alright but it’s not your average weakest trend down. With this likely setup, we have just a trendline to work with. It has only two touches, on the third approach of the trendline, it is a hold or break. Taking a cue from the above two JPY pairs, I favor a break.
I wish you a profitable trading week.