Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of August 25th 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)

GBPJPY – My idea here was “On the H4 chart, the price reached a key resistance zone that has formed based on the 100%(187.310) Fibonacci expansion level of the first wave. Also, we have a bearish divergence that has formed between the first high formed at 186.461 and the second high formed at 186.757 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, we have this bearish divergence on the RSI indicator as well, which we may consider as yet another evidence of bearish pressure. Also, based on the Volumes indicator we could see that the volumes are dropping, we may consider this as yet another evidence of bearish pressure. So everything looks good here as well for the bears as and until the key resistance zone (marked in red) shown in the image below holds my short term view remains bearish here. A valid breakout below the last low at 184.545 would be the validation for this short term bearish view”.

Current Scenario – In this pair, the validation for the short term bearish view which is a valid breakout below the last low at 184.545 happened as per the plan. The price then moved lower and has delivered 140+ pips move so far!

EURNZD – My idea here was “On the H1 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 and in addition to this there are no signs opposing this short term bearish view at the moment. Also, we had two strong support zones that have formed, the price moved lower broke 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 short-term view remains bearish here and I expect the price to move lower further after pullbacks”.

Current Scenario – My plan didn’t change in EURNZD. Until both the strong resistance zones (marked in red) shown in the image below hold my short term view still remains bearish here and I expect the price to move lower further.

USDCAD – My idea here was “On the H4 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 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 had a strong resistance zone that have formed and the price which was 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 based on all this, until the strong support zone 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 USDCAD, my short term view was bullish and I was expecting the price to move higher further after pullbacks until the strong support zone holds. The price moved as per the plan here. The pullback that I was looking for happened and then the price moved higher and delivered 100+ pips move to the upside so far!

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