Weekly Summary And Review December 17th 2021

Hi Traders! Weekly summary and review December 17th, 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 this week and how it has currently developed now.

Trading Ideas (Blog Posts)

AUDJPY – My idea here was “Looking at the H1 chart, based on the Heikin Ashi candles we can see that we had strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. After the strong bullish move currently it looks like a flat correction is happening in the form of a range. While measuring the first and second wave inside this range we have two key support zones that has formed. The first key support zone is formed by the 100%(80.683) Fibonacci expansion level of the first wave, 61.8%(80.480) Fibonacci expansion level of the second wave and the bottom of the range. The second key support zone is formed by the 161.8%(80.144) Fibonacci expansion level of the first wave and 100%(80.068) Fibonacci expansion level of the second wave. Until both these key support zones hold my view remains bullish here and I expect the price to move higher further in the short term”.
Current Scenario – In this pair I was expecting the price to move higher further in the short term until the two key support zones hold. The price moved exactly as per my plan here, the price respected the first key support zone and then it bounced higher from this zone delivering 170+ pips move.

 

EURAUD – My idea here was “Looking at the H4 chart, currently it looks like the correction is happening in the form of double wave down. We have the first leg down followed by a correction with the price reaching a strong resistance zone, respected it and is currently bouncing lower from this zone. Also, we have a key support zone that has formed by the 61.8%(1.56244) Fibonacci expansion level of the first wave of this correction and the 61.8%(1.56679) Fibonacci retracement level of the big bullish move. The price still has room lower towards this key support zone and in addition to this there are no signs opposing this short term bearish view at the moment. So basically, until the strong resistance zone holds I expect the price to move lower in the short term at least towards the key support zone”.
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 towards the key support zone. The short term bearish move happened exactly as I expected it to here, the price moved lower further and reached the key support zone delivering around 170+ pips move.
You can see this move clearly on the M15 chart below.

 

EURGBP – My idea here was “On the H4 chart, based on the Heikin Ashi candles we can see that, we had strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. In addition to this, 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 yet another evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently it looks like the correction is happening in the form of double wave down. We also have a bullish divergence that has formed between the first low that has formed at 0.85004 and the second low that has formed at 0.84857 based on the MACD indicator which we may consider as yet another evidence of bullish pressure. Also, we have two key support zones that has formed, the first key support zone is formed by the 61.8%(0.84922) Fibonacci expansion level of the first wave and the 38.2%(0.85157) – 50%(0.84898) Fibonacci retracement levels of the bullish trend pattern. The second key support zone is formed by the 100%(0.84546) Fibonacci expansion level of the first wave and the 61.8%(0.84640) Fibonacci retracement level of the bullish trend pattern. Until both these key support zones hold my short term view remains bullish here”.
Current Scenario – In EURGBP my short term view was bullish and I was expecting the price to move higher further until the two key support zones hold. The price moved lower, reached the second key support zone, respected it and then it moved higher delivering 70+ pips move so far.
Note: You can follow me here on Trading View and also on my blog to get similar ideas on daily basis)

 

To your success,

Vladimir Ribakov
Certified Financial Technician

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