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.  

CHFJPY

Looking at the weekly timeframe, price has been consolidating in a descending channel. Dominant market players since last year have been the bears. Last week’s candlestick approached the upper boundary of the channel. Currently, there has been a strong rejection of higher prices, denoted by the close below.

SUMMARY.

Considering this current weeks’ candle close. There’s a high possibility we might see lower prices. However being in a descending channel ,we have to patiently wait for a break out to confirm any further price movement.

EURCAD

On the weekly timeframe of the Euro vs Canadian dollar, price has been consolidating for a very long time. The resulting price pattern, was a descending channel. Bears came in strongly for the past 2 weeks and have successfully pushed prices lower.

SUMMARY.

We wait for further price action to ascertain whether we are going to see sellers sustain such lower prices. There’s a possibility prices might pullback to test the lower boundary of the symmetrical triangle. Therefore we have to be vigilant and patient for price action to tell us what next.

EURNZD

Looking at the EURNZD daily timeframe, following up last week’s analysis. A bullish engulfing candle stick had just formed which completed a successful retest of the double bottom. However our bullish bias was invalidated as price rotated and broke out of the rising channel. The breakout was further confirmed.

SUMMARY.

Succeeding the breakout of the rising channel, we now have a bearish bias. There’s a chance we might see a pullback back to test the lower boundary of the channel. We monitor this pair to see whether we will see lower prices.

USDCHF

On this week’s timeframe of the Dollar Swiss, we’re going to follow up on the previous fortnight’s analysis. At the time, only the breakout and the inside bar had formed. We described the inside bar as a pullback that was incomplete or yet to be confirmed. During the past week, the pullback was complete by formation of the candle that closed below the breakout/the mother candle.

SUMMARY.

With completion of our retest, further price action will guide us to know whether bears will take prices further down possibly to our major level.

EURNZD

This week on the daily timeframe of the Euro vs Kiwi, there’s a double bottom that was followed by a broke-out and a confirmation retest. The neckline has acted both as resistance and support, the latter following the break out. Bulls closed off the week as shown by the bullish engulfing. In addition to that, the pair has been trading within an ascending channel.

SUMMARY.

Our bias on this pair is bullish succeeding the break out. The rising channel further adds on to our bias. This is a good example of trading confluence. We monitor the pair closely to see whether bulls will sustain the momentum.

CADJPY

Looking at the Lonnie vs yen pair this week, we can see price was supported by a major level. It went further on and consolidated forming a series of lower highs and higher lows. This gave rise to a symmetrical triangle.

SUMMARY.

The last candlestick was a close below the previous one, which closed as a doji. Chances are  prices may slide off to the lower boundary of the triangle. To validate any bias at this point, we wait for a break out. Otherwise we sit on our hands.

NZDJPY

On the weekly timeframe of the Kiwi Yen, price has been pretty choppy. The consolidation has been in the form of a descending triangle with the line of least resistance being bearish. A few weeks ago, we saw a breakout and a retest.

SUMMARY.

This week’s candle, closes below all the previous weeks’ candles, (bearish engulfing) a dominant candlestick after a retest. It shows some convincing bearish indications. We watch the price to see if the downward momentum will sustain.

USDCHF

We’re looking at the Dollar Swiss on the weekly timeframe. Price has been trading within an ascending wedge since this years’ beginning. The main trend was bullish. Last week, there was a very dominant breakout. Evidence of a pullback has been sited this week, which is also an inside  bar.

SUMMARY.

Once the breakout happened, our bias shifted to bearish. We’ll be careful for further price action to confirm the retest. If the lower boundary of the wedge acts also as a resistance, then we watch to see if bears will push price further down. 

GBPCHF

This week we lay our focus on the pair of GBPCHF. There’s a clear well-formed triangle on the weekly analysis. The price is currently at the lower boundary of the triangle. Of more significance is major support zone that has lasted for the last three years, which coincides with the current price levels, making this pattern stronger for us price action traders.

SUMMARY.

We are looking at a likely scenario of the bulls taking over the market as prices are at a confluence level. However, before we can go long we will watch keenly for reversal signals from the daily timeframe to confirm our bias.

XAUEUR

A closer look at this pair reveals a well-formed descending price channel that has held grounds since July 2016. We have an imminent break-out of the channel as illustrated on the chart from last week’s weekly candle that closed high above the upper boundary of the channel. This is a significant turn of events, for the pair, with bulls showing more buying muscles to keep the prices scaling high.

SUMMARY.

Our job as price action traders is to look for any slight weakness on this pair, especially on the lower timeframes of the Daily and the 4Hr, in order to rejoin the buying momentum. Should the buyers keep up their push, the next target level is at the major resistance zone at the price of 1244.86.

GBPJPY

This week’s analysis on the monster is going to be a follow up on a previous analysis. At the time, price had just formed an inside bar. Ours was to wait and see whether price will obey the inside bar and continue in a downtrend. Price action clearly did confirm our analysis, and bears came in heavily.

SUMMARY.

We’ve been in a very strong downtrend denoted by the very few and short retracements. In fact, they all only happened in single candlesticks. Currently price is approaching a major level; we wait for further price action to guide us on our next course of action.

XAUUSD

On gold vs the dollar. It is evident price has been trending up gradually and finally hit a top. Then followed by a downtrend since the years’ beginning in the form of a descending wedge. Eventually after a lengthy period of consolidation within the pattern, we have a breakout.

SUMMARY.

Following the break out, we have a bullish bias which is going of-course to be confirmed by further price action. Affirmation will come by another bullish candle or a successful retest. If the latter passes as true, then the bulls may continue the uptrend which commenced last year.

CADJPY

On this week’s analysis, we’ll be looking at the CADJPY pair on the daily timeframe. The market has been consolidating forming lower highs and resulting into a descending triangle. One may also see it as a double top, with the second top occurring lower than the first one. Price broke out 2 weeks ago and made a pullback, and did the same again last week.

SUMMARY.

Most recently, price broke out of the chart pattern convincingly and was followed by a doji. At this point our bias is bearish, but we will have to wait for further confirmation by price action to see whether bears will maintain lower prices.

NZDCHF

On this pair we will be looking at it on the weekly timeframe. Price has been on a downtrend denoted by the trend line connecting the swing highs. A consolidation ensued in form of a double top that is quite clear. Last week’s candlestick has broken out of the neckline.

SUMMARY.

The breakout that formed gave us an early indication that we could expect price to fall. This being a weekly breakout, you may check on the daily timeframe, if there was a confirmation or a retest. It will give a more refined outlook on whether to anticipate a waterfall of price.

EURAUD

This week we’re going to follow up on a pair which we looked at last week. At the time of the analysis, price had formed the doji with a small real body as shown in the chart. Our course of action was to wait for price action to guide us, since we were at a minor resistance level. A breakout occurred, one that did not have a pullback because they also don’t happen all the time.

SUMMARY.

Bulls are dominant as they’re rallying the price. An inside bar formed signaling a continuation and price did continue bullish. It looks like if they (bulls) maintain the momentum, we might be headed for the major level.

USDCAD

The Dollar vs the Loonie has been on an uptrend since the beginning of the year on the daily timeframe. Currently price is consolidating within an ascending triangle. Where the upper boundary is acting as a resistance zone as shown.

SUMMARY.

At this moment, we are waiting for a break out. Usually an ascending triangle breaks out on the upside, but it is not guaranteed, nothing in the forex market is. Our bias will shift to bullish if there is a break and close above. Otherwise we will monitor the pair and talk bearish if it breaks and closes below the trend line.