Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review February 11th, 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)

EURCHF – My idea here was “On the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. Also, the price which was moving higher has broken above the last high at 1.04407 thus creating higher highs based on the MACD indicator which we may consider as evidence of bullish pressure. We also have a potential bullish hidden divergence that has formed between the first low that has formed at 1.03626 and the second current low at 1.05301 based on the MACD indicator which we may consider as another evidence of bullish pressure. In addition to this, 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. Until both these strong support zones shown in the image below holds my view remains bullish here and I expect the price to move higher further”.

Current Scenario – In EURCHF my view was bullish and I was expecting the price to move higher further in the short term until the two key support zones hold. The price action followed my analysis exactly as I expected it to here. The price which was moving lower respected the first key support zone and bounced higher, delivering 80+ pips move so far.

NZDJPY – My idea here was “On the H4 chart, 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 evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. In addition to this, the ADX indicator gave a bullish signal here as well at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. 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. Until both these strong support zones hold my short term view remains bullish here and I expect the price to move higher further”.

Current Scenario – In this pair based on the above-mentioned analysis I was expecting the price to move higher further after pullbacks until the two strong support zone holds. The price moved higher directly here without pullbacks delivering around 100 pips move to the upside so far. Currently it looks like a pullback is happening, until both the strong support zone holds my view still remains bullish here.

USDCHF – My idea here was “On the H4 chart, we could see that the price which was moving higher has created higher highs which is a sign of gaining momentum towards the bullish side. We then had a pullback with the price creating a bullish hidden divergence that has formed between the first low that has formed on 21st January 2022 and the second low that has formed on 2nd February 2022 based on the MACD indicator which we may consider as another evidence of bullish pressure. In addition to this, we had a strong resistance zone that has formed and the price which was moving higher has broken above this zone and is holding above it. After the breakout this strong resistance zone is acting as a strong support zone for us. The price which was moving lower, reached this zone, respected it and bounced higher from this zone. After the first move to the upside currently it looks like a flat correction is happening in the form of a range. Until the strong support zone holds my view remains bullish here and if we get a valid breakout above the top of the range we may then consider it as a validation for the bullish view and may expect the price to move higher further”.

Current Scenario – The validation for the short term bullish view which is a valid breakout above the top of the range happened here as per the plan. We then had a pullback but most importantly the price was holding above the bottom of the range and then it moved higher further delivering 60+ pips move so far.

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