Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review July 1st 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)

AUDNZD – My idea here was “On the H4 chart, the price which was moving lower has created a bullish divergence that has formed between the first low that has formed at 1.09546 and the second low that has formed at 1.09523 based on the MACD indicator. The price then moved higher and broke above the last high at 1.10505 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. We may consider this as evidence of bullish pressure. Also, the price which is moving higher has broken above the most recent downtrend line which we may consider as another evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here 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. So everything looks good here for the bulls and until the strong support zone (marked in blue) shown in the image below holds my short term view remains bullish here and I expect the price to move higher further”.
Current Scenario – In this pair my short term view was bullish and I was expecting the price to move higher further until the strong support zone holds. The price action followed my analysis exactly as I expected it to here. After the bullish convergence we had a pullback and then the price moved higher further delivering around 70 pips move to the upside until it was blocked by a bearish divergence.

You can see this clearly on the H1 chart below.

CADJPY – My idea here was “Looking at the H4 chart, we could see that after the first move down currently it looks like a correction is happening in the form of potential double wave to the upside. Also, we have a bearish divergence that has formed between the first high that has formed at 105.838 and the second high that has formed at 106.232 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, we have this bearish divergence on the RSI indicator as well, which we may consider as yet another evidence of bearish pressure. Until the strong resistance zone (marked in red) shown in the image below holds my short term view remains bearish here. 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 as per the plan and then the price which is moving lower has delivered 90+ pips move so far.

You can see this move clearly on the H1 chart below.

Oil – My idea here was “On the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies 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, lower lows which we may consider as 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. Also, we had two strong support zones that has formed and the price which is 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”.

Current Scenario – In Oil my short term view was bearish and I was expecting the price to move lower further until the two strong resistance zones hold. After the bearish trend pattern the price which was moving higher reached the first strong resistance zone, respected it and then the price moved lower from this zone, delivering a nice move to the downside so far!

You can see this move clearly on the H1 chart below.

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