EURJPY

Since the month of December last year a bear market ensued on the Euro versus the Japanese Yen which is clearly seen by the descending price channel that has formed since then. Price has respected the resistance and support levels of the channel to the tee. Safe to say that the main trend is a downtrend. Last week’s candlestick was bearish closing off at the support level.

SUMMARY.

While the market is trading within the channel we should be patiently waiting for a breakout and follow price in that direction. The breakout may happen on either side of the channel therefore let’s be vigilant and avoid getting caught up in predicting the market movements before the breakout happens.

GBPNZD

Examining the weekly chart of the British dollar versus the New Zealand dollar which has been on an uptrend for the past 10 months, we can see that the trend up has entered a new phase. An ascending triangle formed which broke out above the pattern. A breakout on the upside of a pattern within an uptrend is a strong signal as it’s in line with the current trend.

SUMMARY.

In addition to the breakout we also have a weekly confirmation candle. The resistance of the pattern also coincides with a major level. Therefore we have a breakout out of a major level as well as a chart pattern. That’s an example of a trading confluence. As further price action guides us on the bull market, watch for the ideal areas to join the trend in case you missed an earlier 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.

NZDCAD

For the past year the New Zealand Dollar versus the Canadian Dollar has been on a steep downtrend with one major retracement visible on the weekly time frame. Price was recently at our major level which has been acting as our support zone. In the previous week price was supported and a dominant bullish candlestick was formed.

SUMMARY.

A bullish engulfing is a potential  reversal candlestick formation, however we can see that we have a resistance zone as our trend line a few pips away from the current price level. Further price action will ultimately guide as whether a complete reversal of the downtrend is imminent. A breakout above the resistance zone would increase the probability of a reversal.

USDCHF

One year ago the bear market on the US Dollar versus the Swiss Franc began. The gradient of the slope is gentle which informs us the strength of the downtrend is medium-weak. Last week as price approached the resistance zone, sellers pushed the price down quite aggressively forming a bearish engulfing. This is a significant occurrence since it’s happening at a price boundary.

SUMMARY.

Our main trend is bearish and a potential reversal signal towards the downside has appeared. The next action seems laid out already. However, it is important to let price action further guide you. A look at a lower time frame will be ideal to guide your next course of action.


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.

USDCAD

Exactly 4 weeks ago in the month of February we covered this pair where there was a descending triangle which was on the brink of a breakout with price at the resistance zone of the pattern. Forex 101 suggests that descending triangle patterns do breakout on the downside. Well just like there are no guarantees  in life neither are there any in the Forex market. Price broke out on the upside which was one of the possibilities we discussed 4 weeks ago.

SUMMARY.

Price did indeed breakout and the uptrend continued at a higher velocity denoted by the steep gradient of the slope. Pay close attention to the market as price is at a major resistance level. Patience is needed as further price action will guide you on whether to follow price after it has either reversed or broken through the resistance level.

EURAUD

After an extended period of a bull market which began 3 years ago, bulls have accelerated the uptrend in recent weeks. During the week that just ended we see a prominent pin bar/shooting star candlestick on the weekly time frame. However zooming in to the daily time frame which is our time frame of choice on this episode of our weekly analysis, we can see a candlestick pattern comprising of a mother candlestick and a set of inside bars. The latter are a potential continuation signal.

SUMMARY.

It is common knowledge that a pin bar is a potential reversal signal nevertheless we see a different scenario on the daily time frame where we find evidence that the market might be on a small pause before carrying on with higher prices due to the occurrence of inside bars. Price action confirmation is key for either higher or lower prices. This would come after a breakout below the low of the mother candle which would indicate possible lower prices to come and vice versa is true.


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.

XAUUSD

Scanning the daily time frame of Gold versus the US Dollar, we are made aware of a double top occurring at the top of a mean uptrend. Bulls have been on a tear on this commodity for 2 years. A double top is a potential bearish signal which in this case price may either reverse completely and be the beginning of a new trend or may be the start of a counter trend before the main trend ensues. Your analysis and time will guide you on which course of action to follow on the bearish move, whether the former or the latter.

SUMMARY.

Coming after the breakout we have to see our confirmation entry signal before we can open any position.Therefore continue to monitor this pair as we await further price action. 

CADJPY

Following up on this pair that we analyzed at the beginning of the month of March,our pattern was a double top that had made a weekly breakout. Our bias was that there’s a very high probability that sellers would take price lower. True to our analysis price fell into a waterfall moving for about 600 pips before hitting a bottom and forming weekly pin bar.

SUMMARY.

Following up on this pair that we analyzed at the beginning of the month of March, our pattern was a double top that had made a weekly breakout. Our bias was that there’s a very high probability that sellers would take price lower. True to our analysis price fell into a waterfall moving for about 600 pips before hitting a bottom and forming weekly pin bar.


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.

EURAUD

Viewing the Euro versus the Australian Dollar on the weekly time frame brings us to one of the most common candlesticks we know as price action traders. A pin bar at the top of a an uptrend that has been ongoing for the past 3 years. Furthermore the pin bar comes after a gap up; knowing that some gaps are usually filled, is this a potential signal of a reversal or a minor retracement before price continues higher? 

SUMMARY.

Price action will guide us to know when and whether we should be waiting for opportunities to short sell the market. Keep in mind that selling at this point is a high risk trade especially with no confirmation candle in sight yet since the trend is an uptrend. Therefore we wait to see whether there’ll be a confirmation candle which can be done on a lower time frame.We monitor this market closely and act when there’s enough evidence and reason to.

CADCHF

During the month of October 2019 we looked at a potential break out of a symmetrical triangle on the weekly chart of the Canadian Dollar versus the Swiss Franc. It turned out that the breakout was a false one and price quickly reversed back into the pattern and went lower, retraced for a few weeks and later broke out below the triangle. Bears have shown great control and dominance in the trend lower as it’s a strong downtrend.

SUMMARY.

It’s very evident that we’re currently in a downtrend, is it coming to end? Or do sellers still have the power the price push further down? Additional price action will guide us accordingly to know whether we look for opportunities to join the trend in case we missed it or wait to see whether there’s a chance that a trend reversal is on the horizon.


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.

CADJPY

Analyzing the weekly chart of the Canadian Dollar versus the Japanese Yen, there’s a double top that broke out in the past week. Price has been quite choppy for the last year and three months throwing different patterns at different stages of the consolidation. Currently the double top with a break out below is a potential bearish indication.

SUMMARY.

Ensuing the breakout , we need to see a confirmation candlestick which will increase the  probability of price falling lower. The confirmation may come as a retest or another bearish candlestick. One can observe the price action confirmation on a  lower time frame such as the daily, for clearer and prompt signals.

AUDJPY

We last looked at the weekly chart of the Australian Dollar versus the Japanese Yen at the beginning of last month where our mother candle was the last candle on the chart. Ours was to see for how long the bears would control this market. The 3 following weeks candlesticks’ resulted in forming inside bars. Later there was a breakout candle that went all the way to the beginning of the ascending wedge.

SUMMARY.

Inside bars are potential continuation candlestick patterns. Testament  to that is the breakout candlestick that continued the downtrend.In our comprehensive Forex course we teach on trading various chart patterns wedges included. This particular wedge played out exactly how we teach especially on the target and it’s no surprise we had a bearish bias all along.


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.

NZDCHF

A steep downtrend on the daily chart of the New Zealand dollar versus the Swiss Franc recently consolidated in a double top with a slanting neckline. The pattern further broke out followed by a confirmation candle a sign that the downtrend may persist. Price is currently at a very significant support zone. With our main trend being bearish and a pattern breaking out below we are already forming a bearish bias .

SUMMARY.

As much as we have concluded that sellers are in control if this market, price action is going to guide as moving forward on the next market state. At the significant level, price may be supported resulting in a reversal or break through and carry on with the waterfall of prices.

GBPCAD

On the daily chart of the British Pound versus the Canadian dollar, there’s an occurrence of a head and shoulder pattern that  has taken a month to form. We have been closely monitoring this currency pair having featured it at the first week of the year, where we concluded it was at the resistance level of a descending channel. A head and shoulder pattern forming at the resistance level of the channel further strengthens our bearish bias. Price broke out of the neckline and receded back above the neckline.

SUMMARY.

This could be a retest of the neckline but only time and price action confirmation will tell. If the neckline is successfully tested and price breaks out below, then very high chances are that we will see bears coming in and pushing prices lower.


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.

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.