Weekly Summary And Review July 22nd 2022

Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review July 22nd 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)

AUDUSD – My idea here was “Looking at the H4 chart, we could see that the price which was moving lower created a bullish divergence that has formed between the first low that has formed at 0.67106 and the second low that has formed at 0.66812 based on the MACD indicator. The price then moved higher and broke above the last high at 0.68030 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence, we may consider these as evidences of bullish pressure. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. 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, currently there are no signs opposing this bullish view. Until the key support zone shown in the image below (marked in blue) holds my view remains bullish here and I expect the price to move higher further after pullbacks”.

Current Scenario – In this pair after the bullish convergence my plan here is to look for pullbacks and then further continuation higher. The price moved exactly as per the plan here, we had a pullback and then the price which is moving higher has delivered 100+ pips move so far!

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

 

 

US Dollar Index – 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. Also, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 108.290 and the second high that has formed at 109.008 based on the MACD indicator. The price then moved lower and broke below the last low at 107.149 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. Currently, it looks like a correction is happening. 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 everything looks good here for the bears. Until the strong resistance zone shown in the image below (marked in red) holds, my short term view remains bearish here and I expect the price to move lower further after pullbacks”.

Current Scenario – In Dollar index my short term view was bearish and I was expecting the price to move lower further after pullbacks until the strong resistance zone holds. The price action followed my analysis exactly as I expected it to here, after the bearish convergence we had a pullback and then the price moved lower further delivering 100+ pips move so far!

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

 

 

Dax – My idea here was “On the H1 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 is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as another 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 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 Dax the price action is following the bullish expectations so far. My plan still remains the same here that is until the two strong support zones hold my view here is bullish and I expect the price to move higher further in the short term.
Note: You can follow us here on Trading View and also on our blog to get similar ideas on daily basis)

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