In this article, I’ll share with you my analysis on GBPCHF and EURAUD.
GBPCHF – After reaching close to the 1.00 level, the pair bounced back and created an impressive bullish correction. The falling resistance ling on the weekly time frame and the resistance levels create key levels around 1.7-1.18 and then 1.20-1.22
EURAUD – The bullish divergence on the weekly time frames made its impact, and the pair reacted with an impressive bullish run. A clean consolidation after that likely hints that the buyers are just accumulating and building their next positions. Break and hold above the consolidation should be a good sign that the buyers are ready to push the pair towards the 1.60-1.62 zone at first and potentially 1.68-1.70 after that.
A detailed analysis of these instruments are as follows.
You can watch the video explanation of this forecast here:
Weekly timeframe – On the weekly chart, the price bounces back right from the bottom around the 1.00 level. I believe the pair is under a corrective bullish phase. The falling resistance line is next to the key volume zone based on my volume profile Key Trading Levels Indicator. Besides this, we have a resistance zone as well around this area. So in my point of view, when the price enters this area there is a very good chance for a bearish correction before potential future rallies to continue with the higher time frames direction.
Daily timeframe – The 61.8% Fibonacci expansion level coincides with the weekly resistance area. I believe, the closer the price gets to this area I believe a bearish divergence should be created and a bearish correction to follow.
Another possible scenario here is, the first reaction from the market might be a pullback down and then a rally towards the daily resistance zone to complete a bearish divergence on the key levels mentioned above.
Weekly timeframe – After the three massive waves of the bearish run, the bearish party ended with a false breakout and a bullish divergence based on the MACD indicator, right next to the 1.45 psychological level. The price flipped and created a bullish convergence, building a strong sign of a potential trend change and bullish run signs.
Daily timeframe – A clean price structure of higher highs, higher lows indicates that the buyers are in control at the moment and this is followed by a consolidation. Once the price breaks and holds above this ranging structure, I would anticipate to see pullbacks to re-test the broken range and further continuation upside towards the key resistance level shown in the image below around 1.60 – 1.62.
Then potentially I expect the price to move higher all the way towards the 1.67 – 1.70 zone.
That would be all for this weekly forecast. I wish you a successful trading week ahead.
Our recommended CFD broker – ActivTrades
If you have any further questions, don’t hesitate to drop a comment below!
Yours to your success,
Certified Financial Technician