Hi Traders! Forex Weekly Forecast Text Format October 11th to October 16th 2020 is here. My team and I always continue to work very hard for you and your success and as we do every week, we have prepared two great gifts for you!
Forex Weekly Forecast Video:
And here is the text format of the Forex Weekly Forecast prepared for you specially by my team:
In this pair on the daily chart after the triple cycle to the downside, I expected to see ABCD correction as long as the strong support zone holds. On the H4 chart, I wanted to see two waves and bullish divergence so that we can then start to look for rallies. The price which was moving lower reached a strong support zone on the H4 chart, it did give us a beautiful short term move as you can see in the screenshot below but it was later blocked with bullish hidden divergence.
Afterward’s in the deeper two waves shown in the screenshot below we never managed to get any new opportunity, there was no bullish divergence completed which basically invalidated the bullish view.
The way I see this pair based on the current scenario I think this pair is going to complete the clearance from the weekly cycle. This might not change the daily cycle and it may simply create one more low as shown in the screenshot below. Because we have a bearish hidden divergence on the daily chart and it may potentially create one more low.
The H4 chart has nothing against and the way I see this, there is a good chance for the price to create one more push to the downside.
So in my POV, I will be looking for pullbacks and possible sell opportunities with bearish evidences in the short term.
One thing to note here is that the price might hold in the level shown in the screenshot below and just complete a turn around with bullish hidden divergence.
Then the way to avoid this is on the H4 chart we should pay attention to how the price behaves. If the price creates a false break as shown in the screenshot below and completes here an extreme divergence and bounces to the upside then it could be the short-term pullback that we are talking about and maybe even more further on.
But as long as this didn’t happen my short-term view remains bearish here and sell retraces with bearish evidences would be my plan here. As there is a very good chance that the price might create one more low slightly below the 1.30 level on the daily chart.
In this pair, I wanted to see one more push to the downside and I mentioned about two possible scenarios, one of them was the ABCD pattern on the H4 chart and the other one was the three lower lows, lower highs on the H1 chart. This pair delivered a very nice move, it broke below the third low on the H1 chart, retested it, and then we got a beautiful drop down until the bullish divergence came into play.
In this pair, my plan from the previous week was to expect the price to move lower further until the strong resistance zone holds. We had a nice move in the short term but then it was blocked by an ABCD pattern with bullish divergence on the H4 and H1 chart.
The ABCD pattern with bullish divergence and the most recent downtrend line breakout invalidated this bearish idea.
The way I see this pair based on the current scenario there is a good chance that on the daily chart the price will try to create a new high based on the cycle shown in the screenshot below. We also have a triple cycle to the upside followed by an ABCD correction with bullish hidden divergence.
Right now the bulls are gaining the momentum on the H4 chart as we have three higher highs, higher lows pattern. We may get some retraces here but my idea on this pair is bullish. So after the breakout of the downtrend line, retraces are likely to provide bullish opportunities in my POV.
In this pair, my idea from the previous week was to expect a corrective cycle to happen until the strong resistance holds. On the H1 chart, the price completed the bearish divergence and provided us a beautiful move to the downside.
Personally in my POV on the daily chart, we have three waves to the upside which ended with bearish divergence and then the price created a bearish convergence.
The way I see this pair we are now in a corrective cycle. The corrective cycle could be in the form of two waves.
Or alternatively in the form of a range.
At the end of the current rally shown in the screenshot below which is likely to form the ABCD pattern, I will be looking for the next evidences (It didn’t happen right now and I don’t see this getting completed during the week but as for now I will go neutral for this pair in the longer run). We will follow this pair for the short-term opportunities in my Traders Academy Club during this week and once we spot the opportunities we will share it with the members during the live meetings. If you are not a part of our club, I invite you to join my Traders Academy Club
The way I see this pair on the H4 chart the price is currently moving inside some sort of a potential bearish channel. The price attempted to break above this channel but this attempt failed, the buyers never managed to hold this momentum. Currently, the price is breaking below the little consolidation shown in the screenshot below inside the bearish channel, which is sort of a Double Trend Line Principle here. Personally I see this as a great opportunity and this pair has a good chance to continue to the downside.
When we take a look at the sRs Pro we can see that there are many red candles compared to the blue candles, this is normally a sign of bearish control. We can also see that the daily has more red candles as well which means during the week we might enjoy some fantastic opportunities. The momentum is all bearish as well (The sentiment is not bearish yet but if the momentum remains bearish then the sentiment will also change).
In this pair on the weekly chart, we are facing a bullish divergence on the moving averages of the MACD indicator. So in my POV, this pair is still good to go for the longer-term correction to the upside.
Looking at the daily chart we have the first leg to the upside and then we were facing the corrective cycle, completing here sort of expanded divergence and the price is holding the bottom. Then the price started the bounce from the H4 chart.
The most interesting part on the H4 chart is that the price never managed to break below the uptrend line shown in the screenshot below, this is a very strong sign. We also have a very strong support area that holds around the 1.18 zone.
Right now the price is building some sort of consolidation as shown in the screenshot below. If the price manages to break above this consolidation then I think it should be a good sign for the price to continue higher further.
So the way I see this pair it should complete the final leg to the upside until the bearish divergence would go and complete itself.
On the monthly chart, we have a bullish divergence and the price is holding the psychological level 10. I believe currently the price is into the corrective phase which might happen in the form of two waves.
Or alternatively in the form of range.
So I would be looking for drops and buys with bullish evidences here. Looking at the daily and weekly chart they have no signs against this bullish view. On the daily chart, we have the first wave followed by the correction, and currently, we have the second wave to the upside and I am basically expecting another leg to the upside.
So in my POV, every pullback to happen here should provide a good opportunity to ride to the upside.
Looking at the H4 chart we could see this opportunity is very likely to happen, we have some slow down in the short term and with every drop here I would be looking for buy opportunities with bullish evidences.
In Dax, one of the scenarios that I mentioned in my previous week’s forecast was to get the ABCD pattern on the H4 chart and then to look for further continuation lower, ideally after the break of the most recent uptrend line. Nothing really changed here since, we now have the deeper ABCD pattern with bearish divergence and break below the most recent uptrend line would be a good sign for a potential continuation lower.
The only thing that I would be paying attention to is if this turns to be three waves to the upside followed by two waves correction and breaks above the most recent downtrend line as shown in the screenshot below. if this happens then this bearish view will be invalidated.
Meanwhile, the idea still remains the same here, as we have a triple wave to the upside followed by a double wave correction. If the price manages to get below the most recent uptrend line and gain the bearish momentum then I would be expecting the price to continue lower further.
Note: Keep an eye on fundamental news.
I have more instruments in my list which I will cover this week in the Live Market Analysis in Traders Academy Club.
This is how the report looks like. A table with the hottest market opportunities, screenshot behind every pair and time frame (anything that is in blue inside the table is clickable and leads to a screenshot) + a summary in text format, kind of highlights. And of course Live Market Analysis every single day. If you want to enjoy similar trading ideas as they come live (we run our Live Market Analysis on daily basis, where we analyze the market choosing the synchronized opportunities as we see them) I invite you to join our Traders Academy Club
Note: Bullish evidences could be in the form of candlestick patterns, false breaks, trend line breakout etc… supporting the bullish view and bearish evidences could be in the form of candlestick patterns, false breaks, trend line breakout etc… supporting the bearish view.
Once again I invite you to join me in my Live Market Analysis, on daily basis, and improve your trading with us.
Also, you can get one of my strategies free of charge. You will find all the details here
I wish you a wonderful trading week
Yours for your success,
Certified Financial Technician