On this pair we are also going to follow up on what we observed two weeks ago. Price was on a long term ascending channel. There was a bearish move to the lower boundary of the channel. Right at the lower boundary, formed a bullish engulfing candle. Later the following week a doji was spotted succeeded by a bearish candle. A candle stick pattern known as an evening star.

SUMMARY:

During the analysis of the pair we concluded that we had to wait for a bullish confirmation after the bullish engulfing formation. Here we have another perfect example of how waiting for a confirmation is paramount in trading profitably consistently. It eliminates the chances of getting faked out or caught up in false moves. Price formed a doji there after, showing indecision of the bulls then a bear candle pushing prices further bearish. At this point we’re back playing the waiting game. Additional guidance is needed with either more bear dominance to break and close below the channel or a resistance of the lower boundary of the channel.

This week’s analysis will consist of a follow up of the previous week’s work. In the past 5 trading days on the pair, price broke and closed below the neckline momentarily. Which was then followed by a rejection of much lower prices and price pushed further up. The recent bullish move is seen to have reached on the level of the left shoulder of the head and shoulder chart pattern.

SUMMARY:

Remember we mentioned previously that in order to trade the head and shoulder pattern we have to be patient for a break and close below then followed by a confirmation. Basically the pattern is only complete if the latter happens. However our pattern was not completed, buyers took over the market and bid for higher prices.It should be clear how waiting for a confirmation prevented one to be faked out by the close below of the neckline. Currently price has formed an inside bar. We’ll again have to wait for a confirmation from price whether price will continue bullish with a close above the mother candle or reverse and close below it.

Analysis

This week we are going to look at the GBPNZD on the daily timeframe. This is one of the most volatile pairs in the forex markets. It is quite clear when we look left, prices have been on a very steep downtrend. We can confirm the steepness from the gradient of the trend. Price later reached a near-term support then rallied up momentarily. Following the rally, there was a consolidation in form of a chart pattern. The pattern is known as a head and shoulder pattern as illustrated on the chart.

Summary:

Consolidation is an indication of indecision between the buyers and sellers. Price was supported twice on the neckline of the pattern but eventually broke and closed a few pips below the neckline. At this point, we will hold on for prices to confirm the breakout from the neckline, as we know it is possible for prices to gain some bullish momentum and rally back up to the level of the left shoulder. Therefore to confirm bear power a pullback/retest is important to verify that the neckline will resist price from rallying back up past the neckline and push downwards.

Analysis:

This currency pair has been caught up in a ranging market. A series of pin bars and dojis mark a lower high and the inside bars illustrate that there are weakness in the buyers.

Summary

Are we headed to the support zone or will the investor sentiment change? This is a perfect illustration of the market speaking to a price action trader. Remember that the price always guide us on where the market is headed.

FX MARKET ANALYSIS NZDUSD NZDUSD 17th – 21ST Dec, 2018 📈📊💰

The kiwi has been on a losing streak and this pair has been on a significant downtrend. We see a break of the support and the price has come back to retest the price. The doji forms followed by the bears who have dominated the market. Are we going to see a continuation? We will let the price give us more light in the behavior of this pair in the forthcoming days.

CADCHF(10th December to 14th December)

Analysis: A close look at this pair reveals that prices are have been consolidating and forming a symmetrical triangle. This is a strong indication of an eminent break-out of prices. Therefore, we should expect a breakout on either side of the triangle, that is either to the upwards or to the downside.

Summary: At this point we do not know the direction of the anticipated break-out, we therefore sit and wait for a clear price action signal after prices have broken out to decide on our bias on this pair, that is whether to go long or short.

USDCAD (3rd December to 7th December):

Analysis: Price action analysis on this pair shows that it is has reached a major price ceiling/resistance level. A fakey candlestick pattern followed by a pinbar formed towards close of last week; which is a strong indication of an imminent market reversal at the resistance level.
Summary: We will wait for bearish confirmation candlesticks as the market resumes trading this week in order to confirm the trend reversal, and for us to go short on this pair.
Weekly Analysis of Trade Set ups and Ideas EURAUD 26th - 30th Nov 2018

EURAUD (26th November to 30th November, 2018)

A close look at this pair’s weekly time frame reveals a well formed weekly price channel that has held grounds since January 2017 up to date. Prices have respected the boundaries of the channel. This week and the following weeks we’ll continue to watch for reversal price action signals around the upper and the lower boundaries to trade within the channel.

Summary: Unless prices break out of the channel, we’ll continue to trade along the price channel.

Weekly Analysis of Trade Set ups & Ideas USDCHF

USDCHF (19th November to 23rd November)

We analyzed this pair last week, and we are still on a ranging market. There has been a strong bullish rally but the US dollar might be losing its strength on this strong resistance zone which has held grounds for the last three years!!

Summary: The bears are taking control of this pair based on last week reversal candlestick. Therefore, we will be closely monitoring this pair for trend reversal price action patterns/signals to confirm our bias to go short on the pair.

AUDCAD (19th November to 23rd November)

The pair recently bounced off the major support area as highlighted in yellow, forming a series of strong bullish weekly candlesticks. The bullish momentum has been quite strong. The price is now at a significant zone which acted as the previous support. The prices might stall, reverse, or continue with the momentum (.i.e. if buyers have enough strength).

Summary: We will therefore be watching the market behavior of this pair around this zone, for price action to guide us on which direction the pair will be headed in the coming days and weeks.