Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review January 28th, 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)

EURGBP – My idea here was “On the H4 chart, we should note that the price which was in a bearish trend so far creating series of lower highs, lower lows has created higher highs for the first time in a while which we may consider as sign of a possible trend change. In addition to this, we have this higher highs on the MACD indicator as well, which we may consider as another evidence of bullish pressure. Also, based on the Stochastic Oscillator, we could see that the price has reached its extreme here as well which we may consider as yet another evidence of bullish pressure. So everything looks good here for the bulls and currently it looks like a pullback is happening.  Until the strong support zone (marked in red) holds I expect the price to move higher further after pullbacks”.

Current Scenario – In this pair based on the above-mentioned analysis, until the strong support zone holds my short term view was bullish and I was expecting the price to move higher further after pullbacks. The price which is moving lower has currently reached the strong support zone again. At the moment there are no bullish signs, so my current view on this pair is neutral.

EURJPY – My idea here was “On the H4 chart, we could see that the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows we may consider this as another evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like a correction is happening. In addition to this we have a potential bearish hidden divergence that has formed between the first high that has formed at 131.175 and the second current high that has formed at 129.116 based on the MACD indicator. Also, based on the Stochastic Oscillator we could see that the price has reached its extreme, we may consider these as other evidences of bearish pressure. In addition to this, we have a strong support zone that has formed and the price which is moving lower has broken below this zone and is holding below it. Currently, this strong support zone is acting as a strong resistance zone for us. Until this strong resistance zone holds my view remains bearish here and I expect the price to continue lower further”.

Current Scenario – On the H4 chart, my view was bearish and I was expecting the price to move lower further until the strong resistance zone holds. The price action followed my analysis exactly as I expected it to here. After the bearish trend pattern the pullback that I was looking for happened and then the price which is moving lower has delivered 80+ pips move so far.

Gold – My idea here was “On the H4 chart, the price which was moving higher has reached a key resistance zone formed by the 100% (1859.36) Fibonacci expansion level of the first wave, respected it and has bounced lower from this zone. Also, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 1847.85 and the second high that has formed at 1853.81 based on the MACD indicator. The price then moved lower and broke below the last low at 1828.48 creating lower lows, thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider these as evidences of bearish pressure. Generally, after a bearish convergence we may look for corrections and then further continuation lower. 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 value over 25 which we may consider as yet another evidence of bearish pressure. So based on all this, until the key resistance zone shown in the image below (marked in red) holds I expect the price to move lower further after pullbacks”.

Current Scenario – In Gold my view was bearish and I was expecting the price to move lower further after pullbacks. The price moved lower directly here without pullbacks delivering a nice move to the downside so far.

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