Hi Traders! Weekly summary and review August 13th, 2021 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 in this week and how it has currently developed now.
CHFJPY – 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. We may consider this as an evidence supporting the bears. In addition to this, the price has created a bearish hidden divergence between the first high that has formed at 120.471 and the second high that has formed at 120.031 based on the MACD indicator, which we may consider as 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”.
GBPAUD – My idea here was “On the H1 chart, we have a strong resistance zone that has formed and the price which was moving higher reached this zone, respected it and is bouncing lower from this zone. Then the price which was moving lower broke below the last low at 1.88402 thus creating lower lows based on the MACD indicator, which we may consider as evidence of bearish pressure. Currently it looks like the price is retesting this breakout. So everything looks good here for the bears and until the strong resistance zone holds my short term view remains bearish here and I expect the price to move lower towards the 61.8% or the 100% Fibonacci expansion level. We may then look for possible buy opportunities with bullish evidences”.
NZDCAD – My idea here was “On the H1 chart, after the strong bullish move we had a correction in the form of a range. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which was respecting this range so far has broken above the top of it and is currently holding above it. We also had a bullish divergence that has formed between the first low that has formed at 0.87657 and the second low that has formed at 0.87627 based on the MACD indicator. Then the price moved higher and broke above the last high at 0.87977, we may consider these as evidences of bullish pressure. Currently it looks like a pullback is happening and the price is retesting this breakout and also there are no signs opposing this short term bullish view. Until the strong support zone (marked in blue) shown in the image below holds my short term view remains bullish here and I expect the price to move higher further”.
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To your success,
Vladimir Ribakov
Certified Financial Technician
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