Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and review of January 13th 2023 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)

USDCAD – My idea here was “On the H4 chart, currently, we have a strong bearish momentum and the price which is moving lower has broken below a strong support zone and is holding below it, we may consider this as evidence of bearish pressure. After the breakout, this strong support zone is acting as a strong resistance zone for us. Also, the price moved lower and has broken below the last low at 1.34698 and created lower lows based on the MACD indicator, which is another sign of gaining momentum toward the bearish side. 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. So everything looks good here for the bears and I expect the price to move lower further in the short term after pullbacks until the strong resistance zone (marked in red) shown in the image below holds”.

Current Scenario – In USDCAD, I was looking for short-term bearish moves to happen after pullbacks. The pullback that I was looking for happened and the price moved lower as I expected it to and has delivered 130+ pips move until it was blocked by a bullish divergence.

EURCAD – 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. Also, we have a bearish divergence that has formed between the first high that formed at 1.43875 and the second high that formed at 1.44351 based on the MACD indicator supporting the H4 bearish hidden divergence, which we may consider as 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 a valid breakout below the most recent uptrend line would be the validation for this short-term bearish view”.

Current Scenario – In this pair, the validation for the short-term bearish view which is a valid breakout below the most recent uptrend line happened here. Currently, it looks like a pullback is happening. Until the second strong resistance zone holds my short-term view still remains bearish here.

EURJPY – My idea here was “On the H4 chart, we could see that the price which was moving lower has created a bearish trend pattern in the form of three lower highs, and lower lows we may consider this 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 the correction that we are looking for has happened in the form of a double wave to the upside. In addition to this, we had a bearish hidden divergence that formed between the first high formed at 142.941 and the second high formed at 141.357, followed by a continuing bearish divergence between the first high that formed at 141.357 and the second current high that formed at 142.851 based on the MACD indicator, we may consider these as other evidence of bearish pressure. 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 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 (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 – In EURJPY the short-term bearish move happened as per the plan. The price which was moving higher reached the first strong resistance zone, respected it and bounced lower from this zone, delivering around 300 pips move to the downside so far!

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