Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of June 9th 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)

CHFJPY – My idea here was “On the H1 chart, 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, 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. Also, currently there are no signs opposing this short term bearish move here as well at the moment. So the bottom line here is that all the evidences are favoring the bears here. Until the 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”.

Current Scenario – In CHFJPY currently, the price has reached the second strong resistance zone, respected it and the price which is bouncing lower from this zone has delivered 80+ pips move so far.

USDCAD – 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 was moving lower has broken below the last low at 1.35672 and created lower lows based on the MACD indicator, which is another sign of gaining momentum toward the bearish side. In addition to this, the ADX indicator gave a bearish signal here at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads a value over 25 which we may consider as yet another evidence of bearish pressure. 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”.

Current Scenario – In this pair based on the above-mentioned analysis I was expecting the price to move lower further after deeper pullbacks until the two strong resistance zones hold. The price moved lower directly here without deeper pullbacks delivering 110+ pips move to the downside so far.

NZDUSD – My idea here was “On the H1 chart, we could see that the price which was 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 have a key support zone that has formed, based on the 100%(0.60302) Fibonacci expansion level of the first wave of this correction and the 50%(0.60479) – 61.8%(0.60331) Fibonacci retracement levels of the bullish trend pattern. The price which was moving lower, reached this zone, respected it and is currently bouncing higher from this zone. So based on all this, until the key support zone (marked in green) shown in the image below holds my short-term view remains bullish here. If we get a valid breakout above the most recent downtrend line we may then consider it as a validation for this short-term bullish view and may then expect the price to move higher further”.

Current Scenario – In this pair, the validation for the short-term bullish view which is a valid breakout above the most recent downtrend line happened as per the plan. We then had a pullback and then the price which is moving higher has delivered a nice move to the upside so far!

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