Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review July 8th 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)

CHFJPY – My idea here was “On the H1 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 evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like the correction that we were looking for is happening. In addition to this, we had a bearish hidden divergence that has formed between the first high that has formed at 142.314 and the second high that has formed at 141.577 based on the MACD indicator, followed by a potential bearish continuing divergence we may consider this as other evidences 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 hold my short term view remains bearish here and I expect the price to move lower further. A valid breakout below the most recent uptrend line would be the validation for this bearish view”.

Current Scenario – Based on the above-mentioned analysis my short term view was bearish here and also I mentioned that “A valid breakout below the most recent uptrend line would be the validation for this bearish view”. 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 moved lower further and has delivered 230+ pips move!

EURNZD – My idea here was “On the H4 chart, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 1.69304 and the second high that has formed at 1.69667 based on the MACD indicator. The price then moved lower and broke below the last low at 1.66642 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 as well 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. Until the strong resistance zone (marked in red) holds my view remains bearish here and I expect the price to move lower further after pullbacks”.

Current Scenario – In EURNZD 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 small pullback and then the price moved lower further delivering around 270 pips move!

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

NZDJPY – My idea here was “Looking at the H1 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 83.151 and the second low that has formed at 83.013 based on the MACD indicator. The price then moved higher and broke above the last high at 83.916 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. Currently it looks like a correction is happening. 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. Also, currently there are no signs opposing this short term bullish view. Until the key support zone shown in the image below (marked in blue) holds my short term view remains bullish here and I expect the price to move higher further”.

Current Scenario – In this pair after the bullish convergence my plan here is to look for pullbacks and then further continuation higher. Currently it looks like a pullback is happening, until the key support zone holds my short term bullish view still remains the same here.

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