Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of September 8th 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)

GBPAUD – My idea here was “On the H1 chart, currently we have a strong bullish momentum and 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 strong bullish environment as well. In addition to this, we could see that the price which is 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. Currently, it looks like a correction is happening, also we had two strong resistance zones that have formed and the price which is 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. So based on all this, until both these strong support zones shown in the image below (marked in green) hold my short-term view remains bullish here and I expect the price to move higher further after pullbacks”.

Current Scenario – In GBPAUD 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.

Silver – 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 – Based on the above-mentioned analysis my short term view was bearish here and I was expecting the price to move lower further until the two strong resistance zones hold. After the bearish trend pattern the price didn’t provide the deeper pullback that I was looking for and it continued the rally after smaller pullback and has delivered a nice move to the downside so far.

EURNZD – My idea here was “Looking at the H4 chart, currently it looks like a correction is happening in the form of potential double wave down. Also, we have a key support zone that has formed based on the 61.8%(1.81826) – 100%(1.80623) Fibonacci expansion level of the first wave. The price which was moving lower, reached this key support zone, respected it and is currently bouncing higher from this zone. Also, we have a bullish divergence that has formed between the first low that has formed on 23rd August 2023 and the second low that has formed on 1st September 2023 based on the MACD indicator which we may consider as evidence of bullish pressure. We also have this bullish divergence on the RSI indicator as well, which we may consider as yet another evidence of bullish pressure. In addition to this, currently there are no signs opposing this short term bullish view. So based on all this, until the key support zone holds my short term view remains bullish here. A valid breakout above the most recent downtrend line would be the validation for this short term bullish view”.

Current Scenario – In this pair based on the above-mentioned analysis my short term view was bullish until the key support zones hold. Also, I mentioned that “a valid breakout above the most recent downtrend line would be the validation for this bullish view”. The validation for the bullish view which is a valid breakout above the most recent downtrend line didn’t happen yet. My plan still remains the same here.

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