CADJPY

On the CADJPY pair, the focus this week is a consolidation in form of a weekly descending channel. The tag of war between bulls and bears within the channel is evident as prices have been contained within the support and resistance boundaries. However the main players are the bears who have taken prices lower and lower for the past 2 years.. The past week closed off with a pin bar.

SUMMARY.

Pin bars are potential reversal signals. In order to come up with a bearish bias, we need to see the pin bar confirmed by a candlestick that closes below such as an engulfing or a bearish marubozu. Until then, we patiently observe the charts for further price action.

GBPNZD

On the GBPNZD pair, the daily timeframe shows an ongoing fairly strong uptrend trading within an ascending channel. Bulls are the dominant market participants signified by the trend which is up. Prices have been resisted at the upper boundary as well as being supported at the lower boundary. Most recently a doji formed followed by a bullish marubozu.

SUMMARY.

Price action suggests that bulls are determined to push prices much higher. Nevertheless, we have to monitor and see how price will behave upon reaching the channel’s resistance. Otherwise the rally may be headed towards the major resistance.

EURAUD

EURAUD

A close look at the pair on the daily timeframe reveals a clear ascending price channel that has continued to hold grounds. More significantly, the price channel falls within a long-term uptrend, making it a strong pattern to trade off. From the charts, we find that prices have respected the lower support line of the channel, with prices reversing to the upside for the last 6 months.

SUMMARY.

The price is currently almost touching the support line of the channel. At this point, we watch for price action reversal patterns such as a bullish pinbar/double bottom/engulfing, both in the daily and the lower timeframe of the 4hr in order to go long. We do not open any position(s) before we have entry confirmation to the upside.

CADCHF

CADCHF

This week we revisit this pair that we covered about two weeks ago in our weekly analysis. Zooming at the daily chart, we find that the clearly cut-out descending price channel has continued to hold grounds, with prices trading within the support and resistance lines of the channel for the last eight months. What makes the current level more significant for us, price action traders, is the fact that it falls within the near-term resistance level.

SUMMARY.

We stay put, hold our guns, as we wait for reversal price action patterns/candles such as a bearish pinbar/bearish engulfing candle/hammer to inform our bearish bias. Once the pattern(s) forms, coupled with an entry confirmation, we pull the trigger aiming towards the downside.

GBPUSD

This week we will look at the British Pound vs The US Dollar (GBPUSD) which we had covered a fortnight ago. At the time, price had just closed above the mother candle, indicated by the breakout candle. Our bias was bullish , ensuing the breakout.

SUMMARY.

Bulls caused a rally ,halting at the upper boundary of the descending channel. This boundary acted as resistance. Remember in the previous analysis, we mentioned that the major trend is bearish. Furthermore we are in a descending channel. Therefore we monitor the pair closely to see whether the bearish trend will resume.

USDCHF

Looking at the daily chart of The Dollar vs The Swiss Franc (USDCHF), we can see the formation of a descending triangle. Price is forming lower highs being resisted by the upper boundary as well as  lows being supported by the lower boundary of the triangle. During the past week we have seen bullish strength coming in, leading to a breakout of the channel.

SUMMARY.

Following the break out of the price pattern, we watch closely to see if  there will be a confirmation, after which we will follow price.

GBPAUD

Early this month we looked at The Great Britain Pound vs The Australian Dollar (GBPAUD). We are doing a follow up on the previous analysis where an ascending channel had formed. A bullish engulfing candlestick pattern formed at the bottom of the channel. After the said formation, we had bullish bias and we were patient for price action to confirm this bias.

SUMMARY.

Coming after the bullish engulfing was a period of consolidation within which indecision candles formed, namely a hammer and inverted hammer. During the past week we see a bullish candlestick with a wide spread, closing above the consolidation area confirming our bias of a bounce off the lower boundary of the pattern. We continue to monitor this pair in order to know whether bullish strength will remain dominant within the channel.

NZDJPY

Following up on a previous analysis on the weekly chart of The New Zealand Dollar vs The Japanese Yen (NZDJPY). The analysis was done in the month of June where we saw a descending triangle breakout and retest. At the time, the retest that happened is marked in red. Price went on and further retested the lower boundary of the pattern highlighted in yellow.

SUMMARY.

Our chart pattern breakout led to lower prices where we see a strong downtrend depicted by the steep gradient of the trend. We continue to watch this pair for further price action to confirm whether the downtrend will persist.

GBPUSD

On this week’s analysis looking at The British Pound vs The US Dollar on the daily timeframe.. We are going to analyze the candlestick formation within a descending channel. This pair has been on a very much sustained downtrend. Therefore it goes without saying that we’re in a bear market. At the moment we’re at a strong support zone. A mother candle has formed at the support zone, followed by multiple inside bars. The last days’ candlestick has broken out  above the mother candle.

SUMMARY.

A close above the mother candle is an indication that the bulls may be coming into this market, invalidating the bearish mother candlestick. Whenever inside bars form, a close either above or below the mother candle will most likely indicate an opportunity.  However we should keep in mind that we’re in a bear market. Price action will give us confirmation whether bulls will reverse prices or they will just cause a minor retracement probably to the upper trendline of the channel before bears resume with the downtrend.

CADCHF

On the weekly chart of The Canadian Dollar vs The Swiss Franc, there’s a formation of a triple top, which broke out last week. This weeks’ candlestick after the breakout candle is a dragonfly doji.

SUMMARY.

Succeeding the breakout of the triple top, our bias is bearish. The upper shadow of the doji shows that price rallied to the neckline but got resisted. This is a sign of a pullback which is visibly seen on a lower timeframe such as the daily. Sellers later came in and pushed price lower but bulls fought back and price closed on the highs. Since doji’s show indecision, we have to wait for further price action to confirm lower prices.

EURAUD

On the weekly chart of The Euro vs The Australian Dollar, we can see the complete formation of an ascending triangle. Price has been trading within the triangle since August last year. Moreover, two months ago we had a false breakout whereby a candlestick closed above the triangle, but the next one reversed prices all the way down to the lower boundary. This is why it’s important to wait for confirmation after a breakout to avoid false breaks. Recently we see another close above the triangle.

SUMMARY.

Ensuing the recent breakout, we again have to wait for further price action to confirm bullish strength. A confirmation on the lower timeframes such as the daily would give as a clear indication of whether price will continue going higher or lower.

CHFJPY

On this week’s weekly analysis, we’re looking at The Swiss Franc versus The Japanese Yen. Bears have been very dominant for one year, as we’ve seen a waterfall of price. The descending channel is a vivid indication of the bearish superiority. However 7 weeks ago, bulls pushed price higher and we had a breakout. Previously, before the breakout, price was resisted by the upper boundary of the channel as well as being supported by the same boundary after the breakout.

SUMMARY.

Our bias on this currency pair is bullish following the breakout. However we wait for price action as usual to confirm this. A dominant bull candle would be a good indication of future higher prices.

EURCAD

On this week’s analysis of the Euro vs The Canadian Dollar. We’re looking at a weekly ascending channel. Price has been supported by the lower boundary and resisted by the upper boundary since 2012. The last two candle sticks are long legged dojis, which show uncertainty.

SUMMARY.

Indecision at the bottom of the channel may be an indication that bears are moving out of the market or just a pause in the downtrend. Therefore we need to wait for a confirmation of a break out or a bounce off the lower boundary of the channel.

USDJPY

On  this week’s analysis of the Dollar vs The Yen we have complete formation of a symmetrical triangle.This particular chart pattern, shows equal strength between the bulls and the bears. No one particular participant is dominant until the pattern breaks out. Price has broken out of the lower boundary of the triangle. In the recent weeks, the market has been ranging around the lower boundary, being retested.The lower boundary of the pattern which acted as support before has now turned into resistance. Last week’s candle has closed below all the previous week’s candlesticks in the retest.

SUMMARY.

Following the bearish candle, we’ll be careful to see whether bear power will be sustained. It is possible that price may turn back and into the triangle. Further price action will give us a clear indication of what is highly likely to happen.

EURNZD

This week’s analysis of the Euro Kiwi, is going to be a follow up on the analysis we did a fortnight ago. At the time of our previous analysis, price had just bounced off the neckline after the retest that is highlighted above. Bears came in and further pushed price lower. During the week that has just ended, bulls came in to the market and commenced a price rally.

SUMMARY.

Following the double top breakout, price hit our targets, which is usually the height or distance of the tops. This setup gave us slightly more pips than our expectation.With bulls currently in control. We wait for price action to clarify whether their momentum will take price back to our neckline or bears will continue with their waterfall of price after the bullish retracement.

GBPAUD

Looking at the Pound Aussie, price is trading within a weekly ascending channel. The channel has held price since 2017. We can clearly see the lower boundary acting as a strong support zone. Denoted by how much price trends after a bounce off of it. Our resistance level being the upper boundary of the channel.

SUMMARY.

Currently a bullish engulfing has formed. This candlestick formation is a potential reversal signal. Happening at a support zone, it increases our bullish bias. As always price will guide us to ascertain whether we are going to see higher prices

GBPUSD

This week’s analysis on the Pound Dollar brings us to the occurrence of a descending channel. Price has been trading within the channel for the best part of this year. Bears have been the dominant market players. Currently we are trading along the lower boundary of the price channel.

SUMMARY.

By the mere virtue that price is at the lower boundary, gives us reason to believe that buyers may be rolling in. Last 2 weeks’ candles have been pin bars. This show potential reversal, but they have to be confirmed in order to be confident of an imminent reversal.

EURAUD

Looking at the weekly chart of the Euro Aussie, an ascending channel comes to our attention. Bears have been responsible for the waterfall of prices back to the lower boundary of the channel.

SUMMARY.

With price at the lower boundary, heightened attention needs to be brought since anything can happen. Sellers may continue with their momentum and break out of the channel. Bulls might as well come in and cause a rejection of lower prices. Price action will guide us on the next line of action.

EURNZD

Following up on this week’s analysis looking at the Euro Kiwi, which we looked up a fortnight ago. At the time, price was trading within the ascending channel. Our bias was bullish. But then the ensuing week, price broke out of the channel and was confirmed. Immediately our bias shifts to bearish. A double top was later formed, broke out and came for a retest of the neckline.

SUMMARY.

Succeeding the retest of the double top. We find reasons to believe that the bears may continue to bid for lower prices. Let the market be and further price action to guide us whether the sellers will sustain a price landslide.

USDCHF

Looking at the follow up of the dollar swissy. We had seen a breakout of the rising wedge. After a very dominant bearish candle, there was a formation of a morning star.

SUMMARY.

As known widely, a morning star is indicative of a reversal. In this case happening after a breakout. It could be a retracement of price, before it further resumes the downtrend. However, the current candlestick is an inside bar which signifies continuation. Patience is key, as price should guide us on what to do next.