Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of April 19th 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.
Trading Ideas (Blog Posts)
AUDCHF – My idea here was “On the H1 chart, we have a strong resistance zone that has formed and the price which is moving higher reached this zone, respected it and bounced lower from this zone. Also, 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. In addition to this, the ADX indicator gave a bearish signal here as well 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. So the bottom line here is that, everything looks good here as well for the bears and I expect the price to move lower further in the short term after pullbacks until the strong resistance zone (marked in red) shown in the image below holds”.
Current Scenario – In AUDCHF, 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 130+ pips move to the downside!
EURCAD – My idea here was “On the H1 chart, the price which was creating series of lower highs, lower lows has made a turn around and has created higher highs for the first time in a while, which we may consider as evidence of bullish pressure. In addition to this, the price has also broke above the most recent downtrend line, which we may consider as another evidence of bullish pressure. Also, we could see that the price has created a bullish divergence which formed between the first low formed at 1.46165 and the second low formed at 1.46104 based on the MACD indicator. The price then moved higher and broke above the last high at 1.46653 creating higher highs, we have this higher highs on the MACD indicator as well, thus forming a classical setup of bullish divergence followed by bullish convergence, we may consider these as other evidences of bullish pressure. Generally after a bullish convergence we may expect correction and then further continuation higher and currently, it looks like a correction is happening. So everything looks good here for the bulls and until the two strong support zones hold my short term view remains bullish here and I expect the price to move higher further after pullbacks”.
Current Scenario – In EURCAD, based on the above-mentioned analysis my short term view was bullish until the two strong support zones hold 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.
EURUSD – 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, and lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then a further continuation lower. Currently, it looks like a correction is happening. Also, the price which is moving lower has created lower lows based on the MACD indicator, which is another sign of gaining momentum toward the bearish side. Also, we had a strong support zone that has formed and the price which was moving lower has broken below this zone and is holding below it, we may consider this as yet another evidence of bearish pressure. Currently, this strong support zone is acting as a strong resistance zone for us. 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 – My plan still remains the same in EURUSD, that is until the strong resistance zone holds my short term view remains bearish here and I expect the price to move lower further after pullbacks.
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Happy Trading!
Arvinth Akash
Home Trader Club Team.
