Today we are going to look at a recent topic we discussed in our first webinar the power of breakout trading. This pair had nice breakout trades that worked really well.

I want you to note how the market topped in the previous bullish trend. Can you identify the price pattern highlighted in yellow? Do you see the candlestick formation in the right top of the chart pattern? If not, feel free to visit www.fourthstreet.co.ke for more information on our Price Action Trading Course.

As you may observe we see a break of the red trendline in the fall of the GBPUSD and we see close outside the bear trendline. Next we see a peculiar candlestick formation that show indecision. Then a strong decision confirms the investor sentiment. What is the price telling you? What is there to say when the price does the talking?

Summary

Our bias on this pair is to stay alert and we will have a very close to see how the bulls will react as price is at a zone of resistance.

Analysis:

This pair has been on a clear uptrend. This pair has been trapped in broadening tops chart pattern and the price has attempted to break the channel but the bulls could not keep up with the momentum. We see the prices soon closed inside the pattern which shows the importance of waiting for candle to close.

This is a perfect example of how the buyers are trapped in the fake breakout.

The sellers have stepped in they are pushing the prices down the bottom of the channel.

Summary:

Our bias for this pair is bullish although we need to see a clear breakout on the channel to hint us that the investor sentiment has changed. The price will guide us on our position as the prices approach the near term support whether the bullish trend will continue or the seller will prevail.

XAUUSD Currency Pair Analysis 

At the moment gold has rallied until the near term resistance. The pair has not broken the resistance level. At this level, price made indecision candles. Last week we see a pinbar which shows weakness in the uptrend. This week an indecision candle followed showing even further weakness in the uptrend. We wait for further price action to know whether the near term level will be broken and trend upwards and head to the major level, or reverse and we go bearish.  For a bearish move we will need further confirmation and for a bullish move we will need a break of the near term level.

SUMMARY

We will watch this currency pair closely and monitor how it behaves on this resistance zone. As usual the price will be our guide on how this precious commodity behaves at this zone.

Want more of such live market analysis every week, kindly ENROLL for our Online Forex Course here https://fourthstreet.co.ke/forex-training/ and learn to trade like a PRO!

EURCHF Currency Pair Analysis

This pair has been making lower highs and lower lows so we are clearly in a downtrend.  The pair bottomed as it formed a tweezer bottom and here we see the prices momentarily pause and bounce off the support zone.

The pair struggled to get to the support area and then we see a weakness in the downtrend as the pair approaches the support area and we see a doji and a strong bullish day.

The bearish trend has shifted its momentum as the break of the trend line. As you can see the market has broken the near term trend line and the market is retesting the support area. Will the market continue the downtrend or the market will bounce back up?

Summary

The break of the bearish trend line shows that the momentum of the bear has shifted. Formation of the morning star at the support level may hint a change in the investor sentiment. We will watch this pair for further price action and let the price guide us to make further trading decisions.

Want more of such live market analysis every week, kindly ENROLL for our Online Forex Course here https://fourthstreet.co.ke/forex-training/ and learn to trade like a PRO!

Analysis

This pair has been trending sideways since late 2016. The market price is at the bottom of the sideways channel and finally hitting the monthly and weekly support. The support area is breached by a huge bear shadow informing us that this is a false break of the support area.

A huge bullish comeback at the support area is expected and the price rallies on Friday.

Will bullish move be sustained?

 Of course we let the market to advise further as we continue speculating this currency pair

Summary: A huge bullish comeback at the support zone could indicate a change in investors’ sentiment. We will monitor this pair closely and we will let the price guide us on the direction of this pair in the coming days and weeks.

Analysis

This pair has been on bear market.  A huge tailed bar formed at the close of last week, hinting a false break of the minor support line, but finding its support at the major monthly resistance area. The bulls make a huge comeback to push the prices higher but will the momentum hold its ground?

Summary: The market has been bear-dominated, but we might see a change in sentiment if the support area is strong enough to reject the prices moving further downside. As always we let the price be our master and we be listening to hear what the market is telling us before we can take initiate any positions on the pair.

WEEKLY FX MARKET ANALYSIS NZDCAD 7TH – 11TH JANUARY, 2019

The major trend of the pair is bearish since we are making lower highs and lower lows. The last time we did analysis on this pair in November 2008, we saw a pin bar forming in a support-turn resistance zone. Furthermore, we see a descending price channel and the trendline has yet to be breached. A strong bearish force of the week has seen to the prices move much lower. Will the bears keep up with the momentum? As always the price is the king and we will wait for further price action to confirm the bears strength.

Summary: Although this currency pair has had a strong bull rally, the movement halted when a pin bar formed at the resistance area. A strong bear candle follows up in the first week of the year, an indication that this currency pair may have resumed the main bearish trend.

WEEKLY FX MARKET ANALYSIS EURGBP 7TH – 11TH JANUARY, 2019

This currency has been in a sideways direction since late 2017, and the channel has held its ground up to now. There have been a few false breaks of the channel but the breakouts could not be sustained.

The bulls dominated the market in the late 2018 only to show signs of exhaustion by the weekly pin bars that have formed over the last three weeks. The bulls’ weakness was further demonstrated by the numerous whipsaws and false breaks swing highs and the market price finally finding its way back to the sideways channel.

The bears eventually retaliated with a strong rejection at the resistance level, plunging the prices down which may be an indication of a change in sentiment.

Summary: Since the market prices are back to the sideways channel we will wait for further price action signal(s) to guide us on the direction bias of the pair.

CURRENCY PAIR: NZDCAD 17th – 21ST Dec, 2018 📈📊💰

This pair has been on a strong uptrend and the momentum of this pair is prone to exhaustion. The quick bullish move has definitely started showing signs of weakness as the market reaches the resistance zone. The pair is indecisive and the bears seem alert. The market main trend is bearish and this is a classic pullback to retest the break of this support. Nevertheless we will watch out for the price to guide us further in order to pick a bias.

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.