Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of July 28th 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)

AUDCAD – My idea here was “On the H4 chart, the price 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. In addition to this, the price which is currently moving lower has created a bullish hidden divergence that has formed between the first low that has formed at 0.88091 and the second low that has formed at 0.88950, followed by a continuing bullish divergence between the first low that has formed at 0.88950 and the second low that has formed at 0.88568 based on the  MACD indicator we may consider this as another evidence of bullish pressure. In addition to this, we have the most recent downtrend line breakout based on the  RSI indicator, which is yet another evidence of bullish pressure. 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”.

Current Scenario -In AUDCAD my short-term view was bullish and I was expecting the price to move higher further until the two strong support zones hold. The price failed to hold in the first strong support zone. Currently, the price is holding in the second strong support zone. Until the second strong support zone holds my short term bullish view still remains the same here.

EURNZD – 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. Also, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 1.79959 and the second high that has formed at 1.80686 based on the MACD indicator. The price then moved lower and broke below the last low at 1.77958 creating lower lows, thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider these as evidences of bearish pressure. Generally, after a bearish convergence we may look for corrections and then further continuation lower. Currently, it looks like a correction is happening. In addition to this, we have this bearish convergence on the RSI indicator as well which we may consider as another sign favoring the bears. So everything looks good here for the bears. Until the strong resistance zone shown in the image below (marked in red) holds, my short term view remains bearish here and I expect the price to move lower further after pullbacks”.

Current Scenario – Based on the above-mentioned analysis my short-term view was bearish here and I was expecting the price to move lower further after pullbacks until the strong resistance zone holds. The price action followed my analysis exactly as I expected it to here. After the bearish convergence, we had a pullback and then the price moved lower further as I expected it to, and delivered 170+ pips move!

EURCAD – My idea here was “On the H4 chart, the price 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 has happened in the form of double wave down. In addition to this, the price which is currently moving lower has created a bullish hidden divergence that has formed between the first low that has formed at 1.45535 and the second low that has formed at 1.46485, followed by a continuing bullish divergence between the first low that has formed at 1.46485 and the second low that has formed at 1.45295 based on the  MACD indicator we may consider this as another evidence of bullish pressure. 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. 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”.

Current Scenario – In EURCAD, the price broke below the first strong support zone, and currently it has again moved back inside this zone. Until both the strong support zones hold my short term bullish view still remains the same here.

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