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EURAUD

Viewing the Euro versus the Australian Dollar on the weekly time frame brings us to one of the most common candlesticks we know as price action traders. A pin bar at the top of a an uptrend that has been ongoing for the past 3 years. Furthermore the pin bar comes after a gap up; knowing that some gaps are usually filled, is this a potential signal of a reversal or a minor retracement before price continues higher? 

SUMMARY.

Price action will guide us to know when and whether we should be waiting for opportunities to short sell the market. Keep in mind that selling at this point is a high risk trade especially with no confirmation candle in sight yet since the trend is an uptrend. Therefore we wait to see whether there’ll be a confirmation candle which can be done on a lower time frame.We monitor this market closely and act when there’s enough evidence and reason to.

CADCHF

During the month of October 2019 we looked at a potential break out of a symmetrical triangle on the weekly chart of the Canadian Dollar versus the Swiss Franc. It turned out that the breakout was a false one and price quickly reversed back into the pattern and went lower, retraced for a few weeks and later broke out below the triangle. Bears have shown great control and dominance in the trend lower as it’s a strong downtrend.

SUMMARY.

It’s very evident that we’re currently in a downtrend, is it coming to end? Or do sellers still have the power the price push further down? Additional price action will guide us accordingly to know whether we look for opportunities to join the trend in case we missed it or wait to see whether there’s a chance that a trend reversal is on the horizon.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

CADJPY

Analyzing the weekly chart of the Canadian Dollar versus the Japanese Yen, there’s a double top that broke out in the past week. Price has been quite choppy for the last year and three months throwing different patterns at different stages of the consolidation. Currently the double top with a break out below is a potential bearish indication.

SUMMARY.

Ensuing the breakout , we need to see a confirmation candlestick which will increase the  probability of price falling lower. The confirmation may come as a retest or another bearish candlestick. One can observe the price action confirmation on a  lower time frame such as the daily, for clearer and prompt signals.

AUDJPY

We last looked at the weekly chart of the Australian Dollar versus the Japanese Yen at the beginning of last month where our mother candle was the last candle on the chart. Ours was to see for how long the bears would control this market. The 3 following weeks candlesticks’ resulted in forming inside bars. Later there was a breakout candle that went all the way to the beginning of the ascending wedge.

SUMMARY.

Inside bars are potential continuation candlestick patterns. Testament  to that is the breakout candlestick that continued the downtrend.In our comprehensive Forex course we teach on trading various chart patterns wedges included. This particular wedge played out exactly how we teach especially on the target and it’s no surprise we had a bearish bias all along.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

NZDCHF

A steep downtrend on the daily chart of the New Zealand dollar versus the Swiss Franc recently consolidated in a double top with a slanting neckline. The pattern further broke out followed by a confirmation candle a sign that the downtrend may persist. Price is currently at a very significant support zone. With our main trend being bearish and a pattern breaking out below we are already forming a bearish bias .

SUMMARY.

As much as we have concluded that sellers are in control if this market, price action is going to guide as moving forward on the next market state. At the significant level, price may be supported resulting in a reversal or break through and carry on with the waterfall of prices.

GBPCAD

On the daily chart of the British Pound versus the Canadian dollar, there’s an occurrence of a head and shoulder pattern that  has taken a month to form. We have been closely monitoring this currency pair having featured it at the first week of the year, where we concluded it was at the resistance level of a descending channel. A head and shoulder pattern forming at the resistance level of the channel further strengthens our bearish bias. Price broke out of the neckline and receded back above the neckline.

SUMMARY.

This could be a retest of the neckline but only time and price action confirmation will tell. If the neckline is successfully tested and price breaks out below, then very high chances are that we will see bears coming in and pushing prices lower.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

NZDCHF

New Zealand dollar versus the Swiss Franc on the weekly time frame shows a down trending market within a descending wedge. The pattern suggests that the main trend is bearish. Bears have been moving the market lower for the last 3 years. Currently price has formed a pin bar followed by a confirmation candlestick. This candlestick pattern is a potential reversal signal.

SUMMARY.

In as much as we have a sign that the market may reverse or change direction keep in mind that the market trend is bearish. The reversal may be short lived, happen imminently or not happen at all. Price action will continue to guide us on which of the above scenarios is most likely to happen.

USDCAD

The US dollar versus the Canadian Dollar on the weekly time frame depicts a clear descending triangle. Price has been within this consolidation for one year and four months. Price is at the resistance level of this particular pattern. Rejection of higher prices at this point would be a good bearish sign. Last week’s candlestick closed below the resistance zone.

SUMMARY.

Another bearish candlestick would act as confirmation that bears are getting into the market. Sellers may then decide to move price lower heading towards our near term level. However bulls may take charge and cause a breakout above the pattern. As usual price action confirmation will guide us accordingly.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

GBPUSD

Analyzing the daily chart of the British Pound versus the US dollar (GBPUSD)a fortnight ago  we got to see a symmetrical triangle.At the time price had been resisted by the upper boundary of the triangle while also being supported by the lower boundary. The chart pattern had not broken out then but has since broken out below during the past week.

SUMMARY.

It is clear that the bears are dominant and consequently led to a breakout below. At the moment our bias is bearish. We have seen the breakout candle and a confirmation. Chances are high that price will continue going lower and lower probably heading towards out near term level in the coming weeks.

USDJPY

On the weekly chart on the US dollar vs the Japanese Yen there’s an ascending channel that has been persistent for 6 months. Last weeks’ candle was a bullish engulfing which is a powerful potential reversal candlestick formation. The engulfing covered the previous candlestick and the gap that occurred 2 weeks ago.

SUMMARY.

Since we’re in an ascending channel ,the main trend is bullish. The bullish engulfing further strengthens the latter. Stay tuned on this market to see whether the bulls will push past the resistance area shown by the trend line or a reversal due to the resistance will occur. 


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

AUDJPY

During the second week of January we looked at The Australian Dollar vs the Japanese Yen (AUDJPY) where there was an ascending wedge present. At the time price had just broken out of the wedge and our bias was a high probability bears may take the price lower.

SUMMARY.

Exactly a month after the analysis, price broke out and we can see that truly sellers came in and pushed for lower prices. Our price pattern acted as a continuation pattern leading to a resume of the bear market. Stay tuned watching this market to see for how long will the sellers control this market manifest.

GBPNZD

Three weeks ago on the weekly chart of the British pound versus the New Zealand dollar (GBPNZD), there was formation of inside bars. Price had just topped our major level and moved down a few hundreds of pips to where the inside bars formed. A fortnight later price broke out above the mother candle, signifying a potential move upwards.

SUMMARY.

Ensuing the breakout above the mother candle,price moved higher. Last week’s candlestick just closed at the major level. In the coming weeks we monitor the pair to determine whether bulls have enough momentum to push price past the major level.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

EURJPY

On the daily timeframe of the Euro versus the Japanese Yen(EURJPY), we have a double top formation. Price was on an uptrend from August last year and both tops of the double top are shy the near term level by a few pips. The near term resistance level has resisted price which caused the formation of the double top.

SUMMARY.

The market opened on a gap which caused the most recent candlestick to open past the neckline. However we can’t validate this as a breakout just yet. We need a confirmation by another bearish candlestick. Following a confirmation of the breakout, we may be looking at lower future prices.

GBPUSD

The British Pound versus the US Dollar (GBPUSD) has been on a tearing uptrend for the past 5 months that topped at the major level. Price has been consolidating at the major level forming a series of higher lows and lower highs which resulted in the formation of a symmetrical triangle.

SUMMARY.

This particular chart pattern can cause a reversal or a continuation of the previous uptrend depending on the direction of  the breakout. Therefore, we wait for the breakout and price action confirmation and follow price accordingly.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

EURNZD

On the daily chart of the Euro vs the New Zealand Dollar (EURNZD) a downtrend has been trending since October last year. The last 2 months show a consolidation in the form of an ascending channel. At the moment price is at the support level of the ascending channel.

SUMMARY.

The chart pattern can either be followed by a reversal of the trend following a breakout above the channel or a continuation if the pattern breaks out below. A breakout will guide us accordingly, therefore we stay monitoring the charts until it’s time to pull the trigger.

USDCHF

On the daily chart of the Us dollar vs Swiss Franc (USDCHF) for this week, price broke out below the channel we mentioned during the last week of November last year and it has been on a steep downtrend since then. The market has currently reached the near term level where we have a potential reversal candlestick formation in a pin bar and a bullish confirmation. Furthermore, the pinbar formed as an insider bar and we have a breakout above the mother candle by our confirmation candlestick.

SUMMARY.

A possibility of a reversal from this point is highly likely. However, it is important to wait for clear signs that the downtrend is over before opening any bullish positions.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

GBPNZD

On the British Pound vs the New Zealand Dollar (GBPNZD) weekly chart, we get to see inside bars forming. The last 2 candlesticks have been inside bars to a bearish candle that occurred 2 weeks ago. Price topped at the major level in October last year and has slowly been descending. It is too early now to say that we’re in a downtrend or to suggest that the downtrend has begun.

SUMMARY.

Inside bars are candlesticks potentially indicating continuation of the trend. In this case our mother candle is bearish. However as usual we need confirmation. For example, a weekly  candlestick closing below the mother candle, would be a bearish indication and vice versa.

EURUSD

On the daily chart of the Euro vs the US Dollar (EURUSD) price is trading within an ascending channel after breaking out of a long term descending wedge. This particular market has been on a downtrend inside the wedge for 2 years. It finally broke above the wedge last year during the month of December. Most recently, looking at the ascending channel we can see a morning star which is a doji ensuing a dominant bearish candlestick, followed by a bullish candle potentially indicating a bounce off the channel’s support heading upwards.

SUMMARY.

Since price broke out above  the descending wedge, we have a bullish bias. Furthermore the channel is rising which increases the certainty of our bias. The morning star clearly shows the rejection of lower prices at the support level with the long lower shadow of the last candlestick. Stay vigilant watching the markets as price action will guide on an ideal entry.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.

GBPCAD

Looking at the monthly time frame of The British Pound vs The Canadian Dollar (GBPCAD) we can see a descending channel that has been present for the past 2 years. Bears and bulls have been playing tug of war as they consecutively take charge of the market in turns. Our attention at this point is December’s candlestick that closed last week, which formed a gravestone doji.

SUMMARY.

A gravestone doji is an indication that buyers pushed the price up but were unable to sustain the rally. The uptrend could be highly likely losing its momentum. Are we going to see a new downtrend? Keep in mind that the main trend is a downtrend as we are in a descending channel. You may look at lower time frames such as the weekly and daily for entry confirmations.

AUDJPY

On the weekly chart of The Australian Dollar vs The Japanese Yen there’s an ascending wedge that has formed within a downtrend. A rising wedge within a downtrend is usually a potential continuation pattern. This week’s candle gapped down and opened below the support level of the rising wedge.

SUMMARY.

There’s a high chance of bears coming in and causing prices to fall. However, before that price could re test the support to see whether it’ll hold as a resistance zone as well. Price confirmation is key and you may open a lower timeframe such as the daily timeframe to scout for bearish opportunities.


Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.