Hello Forex Traders,
This week is full of news events and today (Thursday) is no exception. The Euro and Pound interest rates are released today, whereas tomorrow the NFP figures and unemployment rate for the U.S. will be announced. What does this mean for our trading?
Yesterday’s good ADP numbers for the U.S. saw the EURUSD price make a sturdy fall. However, the fall was a retracement in an uptrend from a technical analysis point of view. And indeed, a few hours later, price rebounded back up from the bottom of the trend channel when the technicals were “back in play”.
This week we looked at many currency pairs so this article will provide a new and quick update for all of them:
The article and Double Trend Trap video from our trading room mentioned a with the trend breakout scenario. This break (blue circle) has occurred during the Asian session of Thursday. The main target is 1.3715, which is the 78.6% Fibonacci retracement. The Euro interest rate and its statement of course might have unknown effects, but from a technical point of view, the trend is up and pullbacks are opportunities for longs up towards the 78.6% target.
The Cable has not broken out of its correction but price is close to doing so. The correction has turned into a very nice wedge and a break above the opportunity line (green) would be the breakout trade scenario. We will be monitoring this setup live in our trading room as well. The main target is the 1.65.
The Aussie weakness did continue this week and that particular view has not changed. The daily bottom is at 0.8850 so the currency has plenty of space to fall and challenge that support level. Any pullback to a Fibonacci retracement level could be the turning spot for more downside.
The USDJPY is indeed making a retracement back towards the 101 – 101.50 area as mentioned in the last article. Price has recently bounced up at 101.80 but this could very well be part of more downside retracement. I am only interested in trading this with the trend (up) and particularly interested in a potential bounce off of the 50% Fib and -272 confluence at 101.60 and the 61.8% Fib and -618 confluence at 101.10. The break of the trend line (green) would also be a good breakout trade. The target would be the immediate top at 103.40 or the bigger daily top at 103.70.
This currency pair continued with its uptrend as well. The main target on the higher time frames is between 1.83 and 1.84 so the recent breakout of the trend lines should find follow through with more upside. Dips back to the broken top could find support as the top now provides a floor instead of a resistance.
The EURJPY is in major uptrend but it is having some hesitation with the 140 round resistance level. It is currently pausing right below this level and has built an interesting chart pattern. A break of the opportunity line (green) could mean a great with the trend continuation trade. The modest target is the -272 at 140.80, the lightly more aggressive on is the -618 at 141.80.
Thanks for reading and sharing this article! Make sure to join our trading room where we discuss these setups and more live. Good Trading!
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