GBPJPY (26th November to 30th November, 2018)
We have a confluence on this pair, i.e. a combination of more than one price action signals/patterns. A close look on the weekly time frame reveals a clear descending price channel coupled with a near-term support level at the price of 143.964.
Summary: We’ll be keen to watch for reversal price action signals at this near-term support level to go long, unless the selling power pushes the prices on this pair further down, whereby we’ll rejoin the down-trend to the lower boundary of the price channel.
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.
EURUSD (19th November to 23rd November)
As we had analyzed the pair last week, we expected a weak euro where we anticipated the pair to break below the neckline of the ‘Head shoulder shoulder pattern’ and a strong dollar but it turned out the downward pressure could not hold. The pair showed a strong rejection of the resistance level, which is turning into a new support level.
The euro retaliated with a strong comeback forming a weekly ‘engulfing candlestick pattern’.
Summary: Our bias for this week and the coming weeks will be to monitor and look for buy price action signals/patterns to go long on this pair, unless price action tells us otherwise.
USDJPY (19th November to 23rd November)
This pair has been very choppy for the last few weeks, but prices are at a major resistance. The US Dollar has been strong overall hence the bullish rally of the yen. The rally came to a halt at the major resistance zone where the currency has had major consolidation. Last week a weekly bearish engulfing candlestick pattern formed, warning us of a potential reversal setup.
Summary: Based on last week’s reversal engulfing candlestick, our bias on this pair remains to go short, however, we will be keen to wait for more confirmation that the trend has actually reversed in order for us to join the downtrend trend.
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.
On our weekly Trade Forex Analysis of Trade set ups and ideas for August 27th to august 31st, here is our analysis: