Weekly Summary And Review August 12th 2022

Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review August 12th 2022 is here. It is now time to recap and summarize the trade setups that we had during this week. Below you will find the short explanation of all the trade setups we had this week and how it has currently developed now.

Trading Ideas (Blog Posts)

NZDJPY – My idea here was “On the H4 chart, we could see that the price which was 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 are looking for is happening in the form of double wave to the upside. In addition to this, we had a bearish hidden divergence that has formed between the first high that has formed at 85.646 and the second high that has formed at 84.754 based on the MACD indicator, followed by a continuing bearish divergence between the first high that has formed at 84.754 and the second current high that has formed at 85.029 based on the MACD indicator, we may consider these as other evidences of bearish pressure. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme and is bouncing lower, which we may consider as yet another evidence of bearish pressure. Also, we had two strong support zones and the price which was moving lower has broken below these zones and holding below them. We may consider this as yet another evidence of bearish pressure. Currently these two strong support zones are acting as two strong resistance zones for us. Until both these resistance zones hold my short term view remains bearish here and I expect the price to move lower further”.

Current Scenario – In NZDJPY my short term view was bearish and I was expecting the price to move lower further until the two strong resistance zones hold. The price failed to hold in the first strong resistance zone. Currently, the price is holding in the second strong resistance zone. Until the second strong resistance zone holds my bearish view still remains the same here. Alternatively if we get a valid breakout above the second strong resistance zone then this bearish view will be invalidated.

AUDUSD – My idea here was “On the H1 chart, the price which was moving lower has created a bullish divergence that has formed between the first low that has formed at 0.69159 and the second low that has formed at 0.68695 based on the MACD indicator. Also, we could see that the price then moved higher and has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. 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. There are two possible scenarios from here, the price might move higher from the current zone or alternatively if it moves lower then the next area to look for bullish setups with bullish evidences would be the second strong support zone. Until both these strong support zones shown in the image below(marked in blue) holds my short term view remains bullish here and I expect the price to move higher further”.

Current Scenario – In AUDUSD the price action followed my analysis exactly as I expected it to here. The price respected the first strong support zone and then it moved higher further and has delivered 170+ pips move so far!

CADJPY – My idea here was “On the H1 chart, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 104.954 and the second high that has formed at 105.085 based on the MACD indicator. The price then moved lower and broke below the last low at 104.296 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, 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 value over 25 which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears. Until the key 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”.

Current Scenario – My plan still remains the same here, that is until the key resistance zone holds my short term view remains bearish here and I expect the price to move lower further.
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