Its the start of a new trading week and it is good if we do some homework over the weekend before the market opens and plan for the new trading week. We can’t control the markets but in a battle, it is better to plan than not to plan at all.
EURUSD – We look at the weekly chart of the pair we intend to trade and that can be done on a Saturday and Sunday as the weekly chart candle close is on Saturday morning around,New York close.
Now, lets look at the EURUSD chart. As you can see price is in a triangle. A consolidation is happening right now as the market waits for direction.
The candle we have last week is a doji, an “indecision” candle. Price is below the 15 ema and price got rejected when it tested the 15 ema. There is no real indication of where the market will go to from the price action. As such, we have to plan for both the possibility of the price going both ways.
To the top side, we have the 15 ema acting as first resistance and then we have point 1 which I marked as a strong resistance zone, representing the top part of the triangle.
At point 2, we have a support level which if broken may bring us lower as the price breaks out of the triangle.
If the market decides to go bearish and breaks out convincingly below the triangle, we have 1.00, parity level to watch. That level coincides with the red down trend line that I have drawn.
On EURUSD, I remain neutral on the pair.
GBPUSD – On the weekly time frame, the pair is currently trading above the 15 ema and last week’s candle is a bullish candle which bounced off the 15 ema.
3 weeks ago, we can see a pintail candle. This could signal that more upside could be in the offing. On the upside, we have resistance zone at 1.586 and this coincides with the 50% Fibonacci level.
On the downside, we have the 23.6% Fib level offering support around 1.52.
AUDUSD – Pair is in a downtrend and is seen clearly here on the weekly chart. Price is seen here near to the bottom line of the down trend channel.
Nevertheless, taking a short trade here might be a risky proposition. A better short trade can be taken upon price rebounding up to the 15 ema.
USDJPY – Pair is seen breaking out of the ascending triangle and made a beeline towards the 125.8 zone. From there, price retraced lower and formed a pin tail 4 weeks ago. Last week’s candle close showed us a doji and it means that market is indecisive at these levels.
If market remains sideways, a touch on the 15 ema might allow the bulls a chance to push the price further up to retest the 125.8 zone again.
To the downside we have 122 as the most immediate support level.
To your trading success.