NZDCHF

New Zealand dollar versus the Swiss Franc on the weekly time frame shows a down trending market within a descending wedge. The pattern suggests that the main trend is bearish. Bears have been moving the market lower for the last 3 years. Currently price has formed a pin bar followed by a confirmation candlestick. This candlestick pattern is a potential reversal signal.

SUMMARY.

In as much as we have a sign that the market may reverse or change direction keep in mind that the market trend is bearish. The reversal may be short lived, happen imminently or not happen at all. Price action will continue to guide us on which of the above scenarios is most likely to happen.

USDCAD

The US dollar versus the Canadian Dollar on the weekly time frame depicts a clear descending triangle. Price has been within this consolidation for one year and four months. Price is at the resistance level of this particular pattern. Rejection of higher prices at this point would be a good bearish sign. Last week’s candlestick closed below the resistance zone.

SUMMARY.

Another bearish candlestick would act as confirmation that bears are getting into the market. Sellers may then decide to move price lower heading towards our near term level. However bulls may take charge and cause a breakout above the pattern. As usual price action confirmation will guide us accordingly.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

GBPUSD

Analyzing the daily chart of the British Pound versus the US dollar (GBPUSD)a fortnight ago  we got to see a symmetrical triangle.At the time price had been resisted by the upper boundary of the triangle while also being supported by the lower boundary. The chart pattern had not broken out then but has since broken out below during the past week.

SUMMARY.

It is clear that the bears are dominant and consequently led to a breakout below. At the moment our bias is bearish. We have seen the breakout candle and a confirmation. Chances are high that price will continue going lower and lower probably heading towards out near term level in the coming weeks.

USDJPY

On the weekly chart on the US dollar vs the Japanese Yen there’s an ascending channel that has been persistent for 6 months. Last weeks’ candle was a bullish engulfing which is a powerful potential reversal candlestick formation. The engulfing covered the previous candlestick and the gap that occurred 2 weeks ago.

SUMMARY.

Since we’re in an ascending channel ,the main trend is bullish. The bullish engulfing further strengthens the latter. Stay tuned on this market to see whether the bulls will push past the resistance area shown by the trend line or a reversal due to the resistance will occur. 


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

AUDJPY

During the second week of January we looked at The Australian Dollar vs the Japanese Yen (AUDJPY) where there was an ascending wedge present. At the time price had just broken out of the wedge and our bias was a high probability bears may take the price lower.

SUMMARY.

Exactly a month after the analysis, price broke out and we can see that truly sellers came in and pushed for lower prices. Our price pattern acted as a continuation pattern leading to a resume of the bear market. Stay tuned watching this market to see for how long will the sellers control this market manifest.

GBPNZD

Three weeks ago on the weekly chart of the British pound versus the New Zealand dollar (GBPNZD), there was formation of inside bars. Price had just topped our major level and moved down a few hundreds of pips to where the inside bars formed. A fortnight later price broke out above the mother candle, signifying a potential move upwards.

SUMMARY.

Ensuing the breakout above the mother candle,price moved higher. Last week’s candlestick just closed at the major level. In the coming weeks we monitor the pair to determine whether bulls have enough momentum to push price past the major level.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

EURJPY

On the daily timeframe of the Euro versus the Japanese Yen(EURJPY), we have a double top formation. Price was on an uptrend from August last year and both tops of the double top are shy the near term level by a few pips. The near term resistance level has resisted price which caused the formation of the double top.

SUMMARY.

The market opened on a gap which caused the most recent candlestick to open past the neckline. However we can’t validate this as a breakout just yet. We need a confirmation by another bearish candlestick. Following a confirmation of the breakout, we may be looking at lower future prices.

GBPUSD

The British Pound versus the US Dollar (GBPUSD) has been on a tearing uptrend for the past 5 months that topped at the major level. Price has been consolidating at the major level forming a series of higher lows and lower highs which resulted in the formation of a symmetrical triangle.

SUMMARY.

This particular chart pattern can cause a reversal or a continuation of the previous uptrend depending on the direction of  the breakout. Therefore, we wait for the breakout and price action confirmation and follow price accordingly.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

EURNZD

On the daily chart of the Euro vs the New Zealand Dollar (EURNZD) a downtrend has been trending since October last year. The last 2 months show a consolidation in the form of an ascending channel. At the moment price is at the support level of the ascending channel.

SUMMARY.

The chart pattern can either be followed by a reversal of the trend following a breakout above the channel or a continuation if the pattern breaks out below. A breakout will guide us accordingly, therefore we stay monitoring the charts until it’s time to pull the trigger.

USDCHF

On the daily chart of the Us dollar vs Swiss Franc (USDCHF) for this week, price broke out below the channel we mentioned during the last week of November last year and it has been on a steep downtrend since then. The market has currently reached the near term level where we have a potential reversal candlestick formation in a pin bar and a bullish confirmation. Furthermore, the pinbar formed as an insider bar and we have a breakout above the mother candle by our confirmation candlestick.

SUMMARY.

A possibility of a reversal from this point is highly likely. However, it is important to wait for clear signs that the downtrend is over before opening any bullish positions.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

GBPNZD

On the British Pound vs the New Zealand Dollar (GBPNZD) weekly chart, we get to see inside bars forming. The last 2 candlesticks have been inside bars to a bearish candle that occurred 2 weeks ago. Price topped at the major level in October last year and has slowly been descending. It is too early now to say that we’re in a downtrend or to suggest that the downtrend has begun.

SUMMARY.

Inside bars are candlesticks potentially indicating continuation of the trend. In this case our mother candle is bearish. However as usual we need confirmation. For example, a weekly  candlestick closing below the mother candle, would be a bearish indication and vice versa.

EURUSD

On the daily chart of the Euro vs the US Dollar (EURUSD) price is trading within an ascending channel after breaking out of a long term descending wedge. This particular market has been on a downtrend inside the wedge for 2 years. It finally broke above the wedge last year during the month of December. Most recently, looking at the ascending channel we can see a morning star which is a doji ensuing a dominant bearish candlestick, followed by a bullish candle potentially indicating a bounce off the channel’s support heading upwards.

SUMMARY.

Since price broke out above  the descending wedge, we have a bullish bias. Furthermore the channel is rising which increases the certainty of our bias. The morning star clearly shows the rejection of lower prices at the support level with the long lower shadow of the last candlestick. Stay vigilant watching the markets as price action will guide on an ideal entry.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

GBPCAD

Looking at the monthly time frame of The British Pound vs The Canadian Dollar (GBPCAD) we can see a descending channel that has been present for the past 2 years. Bears and bulls have been playing tug of war as they consecutively take charge of the market in turns. Our attention at this point is December’s candlestick that closed last week, which formed a gravestone doji.

SUMMARY.

A gravestone doji is an indication that buyers pushed the price up but were unable to sustain the rally. The uptrend could be highly likely losing its momentum. Are we going to see a new downtrend? Keep in mind that the main trend is a downtrend as we are in a descending channel. You may look at lower time frames such as the weekly and daily for entry confirmations.

AUDJPY

On the weekly chart of The Australian Dollar vs The Japanese Yen there’s an ascending wedge that has formed within a downtrend. A rising wedge within a downtrend is usually a potential continuation pattern. This week’s candle gapped down and opened below the support level of the rising wedge.

SUMMARY.

There’s a high chance of bears coming in and causing prices to fall. However, before that price could re test the support to see whether it’ll hold as a resistance zone as well. Price confirmation is key and you may open a lower timeframe such as the daily timeframe to scout for bearish opportunities.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

EURUSD

On the weekly chart of the Euro vs The US dollar (EURUSD) we see a complete falling wedge. This pattern appears after a steep uptrend that lasted a whole year. Price later consolidated within the chart pattern for a period of 2 years. Bulls then pushed price out of the pattern last week causing a breakout.

SUMMARY.

The breakout gives us reason to believe that there’s a high probability buyers will control the market going forward. However, as usual we need price action confirmation to ascertain our bias. Usually, a descending wedge in an uptrend is a potential continuation signal but in due time we will get to know whether the buyers will push prices higher possibly targeting the near term level.

GBPCAD

On the weekly chart of the British pound versus the Canadian dollar (GBPCAD), there’s a descending channel within which prices have ranged for almost 2 years. The descending channel shows that the main trend is bearish, up until the channel breaks out. Which happened in the week that just concluded.

SUMMARY.

Sentiment changes from bearish to bullish after a breakout above a descending channel. Confirmation by price will guide us on the right entry point following our bullish bias. Beware that price pulling back to the resistance of the channel before going up higher is a very likely possibility.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

AUDNZD

This week we’re going to do a second follow up on the Australian Dollar versus the New Zealand Dollar (AUDNZD) pair on the weekly timeframe. Our last analysis, was after the confirmation candlestick and we had formed a bearish bias on the pair. Bears are still in control of the market as they have been able to push price lower for 2 consecutive weeks.

SUMMARY.

Just like we mentioned a fortnight ago, the main trend is bearish. We will therefore monitor and watch price to see whether it’ll push lower all the way to our level of support within the channel. 

GBPUSD

Revisiting the Great Britain Pound versus The US Dollar (GBPUSD) pair shows some market movement that we foresaw 3 weeks ago. At the time of the previous analysis, price had just broken out of the bullish flag. There was a retest that even went beyond the resistance of the flag, but bulls took charge and pushed price higher breaking out of the pattern again.

SUMMARY.

Price is clearly on an uptrend, as we broke out of the larger channel and price is almost back at the top from where that channel begun. Patience is needed as we await to see whether the bulls can sustain the upward pressure all the way up to the major level.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

EURJPY

Following up on the Euro versus the Japanese Yen pair (EURJPY), that we analyzed a fortnight ago. Our bias then was bullish ensuing the first retest. Bears came in after the first retest and pushed prices lower for another test. We can see that the test was successful as the neckline wasn’t broken. Bulls later came in and started the rally again.

SUMMARY.

Price action confirms our previous bullish bias by another test and a minor rally. Therefore, we still believe bulls may sustain higher prices possibly to the near term level.

EURAUD

On the weekly chart on the Euro versus the Australian dollar pair (EURAUD), price has been ranging since June this year. In the process a descending triangle formed and last week we had a break out from the resistance of the triangle.

SUMMARY.

A break out above the pattern is an indicator of potential bullish direction. Following the potential direction, we need price action confirmation to back up our bullish bias. The confirmation in this case could be in the lower timeframe such as the daily chart. We closely monitor the pair to see if price will rise all the way to the major level if bulls take charge.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.