Hello Forex Traders,
Yesterday we showed charts with long-term setups. Today our focus will be the same but with different currency pairs.
Before we embark on this journey, make sure to check out Tim’s great article where he compares his grandma with trading and how that can help your trading!
Coincidentally the EURGBP is on our most recent list of Double Trend Trap Trades for a potential downside trade. The Euro weakness was prevalent in almost all currency pairs (at least the ones I follow).
From a longer-term perspective the EURGBP could be at a very decisive moment. The month of October was a bullish month for the currency pair, albeit with a sizeable wick on top. Is this month a retracement for more upside or was last month a retracement for more downside?
The answer to that question will be known when the EURGBP breaks through support (green and blue) or resistance (red and purple).
The Swissy is in pretty large consolidation zone on the weekly chart and it posted a monthly Doji right at the bottom of that area. The Doji could definitely indicate a potential support for this currency pair.
The Doji is not a major reversal signal but it does indicate indecision. A better confirmation of a potential bounce would be to wait for the break of last month’s high at 0.9180 (dark red). In that case the Swissy could have space to move back up to the top of range (red trend line).
The Ferrari of all of the currency pairs had an inside monthly candle in October. The September monthly candle was a bullish candle which posted a close above resistance (purple line) and price is still above that broken resistance. From a monthly point of view this currency seems to be breaking to upside and its maintaining that momentum.
A double confirmation of the upside break is when price breaks the next resistance trend line (dark red). The target of that upside potential is at first the -272 and then even -618.
The EURJPY is making a rising wedge pattern but we must be careful with being certain about a pending bearish turn around. Yes a rising wedge is a potential reversal signal, but far from a guarantee.
So far the currency pair is inching its forward to the -27.2% target but still is shy of it. A break of that target and a break above the rising wedge would take away bearish sentiments and the pair could continue its weekly uptrend swiftly to the -61.8% target.
Obviously a break through the bottom of the rising wedge increases the probability of a significant correction towards 125 and maybe 120 before potential support could kick in. The maximum expected retracement is the 38.2% Fibonacci retracement.
Did you like today’s and yesterday’s articles on the monthly chart? Would you like to see the same with weekly and daily candles? Let me know down below!
Thank you for reading this article and sharing it! Wish you all Good Trading!
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