Weekly Summary And Review August 19th 2022

Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review August 19th 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)

EURGBP – My idea here was “Looking at the H1 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 addition to this, currently there are no signs opposing this short term bearish view here as well. So based on all this, until the strong resistance zone (marked in red) holds my short term view remains bearish here and I expect the price to move lower further”.

Current Scenario – After the bearish trend pattern my idea here was to look for pullbacks and then further continuation lower. The price action didn’t follow my analysis here and this idea failed. After the bearish trend pattern we had a pullback and then the price provided a short move to the downside until it was blocked by a bullish divergence. The price then moved higher further and has currently broken above the strong resistance zone, thus invalidating this short term bearish view.

 

AUDJPY – My idea here was “On the H4 chart, the price which was moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently it looks like a deeper correction has happened and the price which is moving higher has reached a key resistance zone which is formed by the 100%(95.528) Fibonacci expansion level of the first wave of this correction. The price respected this zone and is bouncing lower from it. In addition to this, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 94.426 and the second high that has formed at 95.148 based on the MACD indicator. The price then moved lower and broke below the last low at 93.489 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.and also, based on the Parabolic Sar we could see that the dots are above the price which we may consider as yet another evidence of bearish pressure. 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 – In AUDJPY my short term view was bearish and I was expecting the price to move lower further until the key resistance zone holds. The price action is following the bearish expectations so far, my bearish view still remains the same here.

 

 

EURUSD – 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, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently it looks like a correction is happening. Also, we had two strong support zones that has formed and the price which was moving lower has broken 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 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 until the two strong resistance zones hold. The price action followed my analysis exactly as I expected it to. The price respected the first strong resistance zone and then it moved lower further delivering around 150 pips move so far.
Note: You can follow us here on Trading View and also on our blog to get similar ideas on daily basis)

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