Hi Traders! Weekly summary and review December 10th, 2021 is here. It is now time to recap and summarize the trade setups that we had during this week. Below you will find the short explanation of all the trade setups we had this week and how it has currently developed now.
Trading Ideas (Blog Posts)
GBPCHF – My idea here was “On the H4 chart, we had a bullish divergence that has formed between the first low that has formed at 1.21869 and the second low that has formed at 1.21360 based on the MACD indicator. Then the price moved higher and broke above the last high at 1.22733 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Currently it looks like a correction is happening. Until the strong support zone (marked in red) shown in the image below holds my short term view remains bullish here and I expect the price to move higher further after pullbacks”.
Current Scenario – In this pair based on the above-mentioned analysis, until the strong support zone holds my short term view was bullish and I was expecting the price to move higher further after pullbacks. We had deeper pullback here with the price reaching the strong support zone again. The price respected this zone and is currently moving higher, my bullish view still remains the same here.
USDCAD – My idea here was “Looking at the H4 chart, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 1.28361 and the second high that has formed at 1.28536 based on the MACD indicator. The price then moved lower and broke below the last low at 1.27127 creating lower lows, thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider these as evidences of bearish pressure. Generally, after a bearish convergence we may look for corrections and then further continuation lower. In addition to this, the ADX indicator gave a bearish signal here at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as yet another evidence of bearish pressure. Also, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward moving market conditions so it basically reflects a bearish environment. So based on all this, until the key resistance zone shown in the image below (marked in red) holds I expect the price to move lower further after pullbacks”.
Current Scenario – In this pair the price action is following the bearish expectations so far. Currently it looks like a pullback is happening, until the key resistance zone holds, my bearish view still remains the same here.
EURJPY – My idea here was “On the H1 chart, the price which was moving higher has broken above the last high at 128.465 thus creating higher highs based on the MACD indicator which we may consider as evidence of bullish pressure. We also have a potential bullish hidden divergence that has formed between the first low that has formed at 127.599 and the second current low at 128.201 based on the MACD indicator which we may consider as another evidence of bullish pressure. Also, based on the Stochastic Oscillator we could see that the price has reached its extreme, which we may consider as another evidence of bullish pressure. In addition to this, we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones shown in the image below holds my view remains bullish here and I expect the price to move higher further”.
Current Scenario – My plan didn’t change in EURJPY, that is until the strong support zones hold my short term view here is bullish and I expect the price to move higher further.
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To your success,
Vladimir Ribakov
Certified Financial Technician
