Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of July 21st 2023 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)

EURJPY – My idea here was “On the H1 chart, we could see that the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows we may consider this as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like the correction that we were looking for is happening. Also, while measuring the first wave of this correction, we have two key resistance zones that has formed. The first key resistance zone is formed by the 100% (155.942) Fibonacci expansion level of the first wave and the second key resistance zone is formed by the 161.8%(157.045) Fibonacci expansion level of the first wave. The price has currently reached the first strong resistance zone, respected it and is bouncing lower from it. In addition to this, we had a bearish divergence that has formed between the first high that has formed at 156.531 and the second high that has formed at 156.336 based on the MACD indicator, we may consider this as another evidence of bearish pressure. Until these two key resistance zones (marked in red) shown in the image below hold my short term view remains bearish here and I expect the price to move lower further”.

Current Scenario – In this pair, based on the above-mentioned analysis, I was expecting short term bearish moves to happen until the two key resistance zones hold. The price which was moving higher reached the second key resistance zone, respected it and bounced lower from this zone, and delivered around 160 pips move before it moved higher and broke above the second key resistance zone.

EURGBP – 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, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Currently, it looks like a correction is happening, also 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(marked in green) holds my short term view remains bullish here and I expect the price to move higher further after pullbacks”.

Current Scenario – In EURGBP, after the bullish trend pattern, I was expecting the price to move higher further after pullbacks until the two strong support zones hold. The price action is following the bullish expectations so far, my plan still remains the same here.

NZDUSD – My idea here was “On the H4 chart, 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. Currently it looks like a correction is happening. Also, we could see that the price which was moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet 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 (marked in green) holds my short term view remains bullish here and I expect the price to move higher further”.

Current Scenario – In NZDUSD, based on my analysis, I mentioned that “until both the strong support zones hold my short term view remains bullish and I expect the price to move higher further”. The price has currently reached the first strong support zone. Until both these strong support zones hold my short term bullish view still remains the same here.

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