Hi Traders! Weekly summary and review January 14th, 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)

USDCHF – My idea here was “On 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. 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. Also, we have two key support zones that has formed, the first key support zone is formed by the 23.6%(0.92342) – 38.2%(0.92090) Fibonacci retracement levels of the bullish trend pattern. The second key support zone is formed by the 50%(0.91885) – 61.8%(0.91681) Fibonacci retracement levels of the bullish trend pattern. Until both these key support zones hold my short term view remains bullish here”.
Current Scenario – The price action didn’t follow my analysis here and this idea failed as the price moved lower and broke below the second key support zone and is holding below it. My current view on this pair is neutral.

EURAUD – My idea here was “Looking at the H1 chart, we could see that 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. Currently, it looks like a correction is happening. Also, we have two key support zones that has formed, the first key support zone is formed by the 38.2%(1.57417) – 50%(1.57071) Fibonacci retracement levels of the bullish trend pattern and the 100%(1.57118) Fibonacci expansion level of the first wave we have. The second key support zone is formed by the 61.8%(1.56724) Fibonacci retracement level of the bullish trend pattern and the 161.8%(1.56350) Fibonacci expansion level of the first wave we have. Until both these key support zones hold my view remains bullish here”.

Current Scenario – In EURAUD 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 action followed my analysis exactly as I expected it to here. The price moved lower, reached the second key support zone, respected it and then it moved higher delivering 120+ pips move so far.

AUDNZD – My idea here was “On the H4 chart, the price is currently moving inside a small range. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is moving inside this range has currently reached the top of it and is bouncing lower. In addition to this, we have a bearish divergence that has formed between the first high that has formed at 1.05359 and the second high that has formed at 1.06497 based on the MACD indicator which we may consider as evidence of bearish pressure. If we get a valid breakout below the strong support zone (marked in blue) we may then consider it as a validation for the bearish view and may expect the price to move lower further in the short term”.
Current Scenario – In this pair, the validation for the bearish view which is a valid breakout below the strong support zone didn’t happen yet. My plan still remains the same here, that is if we get a valid breakout below the strong support zone (marked in blue) we may then consider it as a validation for the bearish view and may expect the price to move lower further in the short term.
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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