Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of April 12th 2024 is here. It is now time to recap and summarize the trade setups that we had during this week. Below you will find a short explanation of all the trade setups we had this week and how it has currently developed now.
GBPUSD – My idea here was “On the H4 chart, 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. In addition to this, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently it looks like a correction is happening and also based on the Stochastic Oscillator we could see that the price has reached its extreme which we mat consider as another evidence of bearish pressure. Also, we had two strong support zones that has formed and the price which is moving lower has broken below these zones and is holding below them, we may consider this as yet another evidence of bearish pressure. Currently, these strong support zones are acting as strong resistance zones for us. Until these two strong resistance zones (marked in red) shown in the image below hold my view remains bearish here and I expect the price to move lower further”.
Current Scenario – In GBPUSD, until the two strong resistance zones hold I was expecting short term bearish moves to happen here. The price action followed my analysis exactly as I expected it to here. The price respected the first strong resistance zone and then the price moved lower further and delivered 230+ pips move to the downside so far!
AUDCAD – My idea here was “On the H1 chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. Also, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as another evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. In addition to this, there are no signs opposing this bullish view at the moment. Also we had a strong resistance zone that have formed and the price which is moving higher has broken above this zone and is holding above it. After the breakout, this strong resistance zone is acting as a strong support zone for us. So everything looks good here for the bulls and until the strong support zone (marked in green) 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 AUDCAD, based on the above-mentioned analysis my short term view was bullish until the strong support zone holds and I was expecting the price to move higher further after pullbacks. The price action is following the bullish expectations so far, my short term bullish view still remains the same here.
AUDUSD – My idea here was “On the H4 chart, currently, we have a strong bearish momentum and 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. Also, the price which was moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like a correction has happened in the form of double wave to the upside. Also, the price which was moving higher has reached a strong resistance zone, respected it and bounced lower from this zone. In addition to this, we have a bearish divergence that has formed between the first high that has formed at 0.66182 and the second high that has formed at 0.66435 based on the MACD indicator. The price then moved lower and broke below the last low at 0.65485 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider this as evidence of bearish pressure. As per the book scenario after a bearish convergence we may expect corrections and then further continuation lower. Currently it looks like a correction is happening. So everything looks good here for the bears and until this strong resistance zone (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to move lower further after pullbacks”.
Current Scenario – In AUDUSD, based on the above-mentioned analysis, until the strong resistance zone holds I was expecting short term bearish moves to happen after pullbacks. The price action followed my analysis exactly as I expected it to here. We had a pullback and then the price moved lower and delivered a nice move to the downside!
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Happy Trading!
Arvinth Akash
Home Trader Club Team.
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