Hi Traders! Arvinth here from the Home Trader Club team. Weekly summary and review December 23rd 2022 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)

AUDCAD – My idea here was “Looking at the H4 chart, we could see that the price which was moving higher has created a bearish divergence between the first high that formed at 0.92774 and the second high that formed at 0.93306 based on the MACD indicator. The price then moved lower and broke below the last low at 0.91906 creating lower lows, thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider these as evidence of bearish pressure. Generally, after a bearish convergence, we may look for corrections and then a further continuation lower. Currently, it looks like a correction is happening. So based on all this, until the strong resistance zone (marked in red) shown in the image below holds my short-term view remains bearish here and I expect the price to move lower further after pullbacks”.

Current Scenario – In AUDCAD, the price action is following the bearish expectations so far. We had a pullback and then the price which is moving lower has delivered around 100 pips move so far!

Dax – 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, 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. 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 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 (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 after pullbacks”.

Current Scenario – In Dax, 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 action is moving as per my analysis so far. We had a pullback and the price which was moving higher created a false break of the first strong resistance zone, the price then moved lower and has delivered a nice move to the downside so far!

EURJPY – My idea here was “On the H1 chart, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies here as well 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, 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 – My plan still remains the same in EURJPY, that is until the two strong resistance zones hold my short-term view remains bearish here and I expect the price to move lower further.

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