Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review June 17th 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 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 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 136.612 and the second high that has formed at 135.912 based on the MACD indicator, we may consider this as another evidence 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”.

Current Scenario – In CHFJPY, 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 and delivered around 140 pips move before the price moved higher.

AUDCAD – 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 0.89089 and the second low that has formed at 0.88830 based on the MACD indicator. The price then moved higher and broke above the last high at 0.89727 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence, we may consider these as evidences 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. 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, my short term view was bullish and I was expecting the price to move higher further until the key support zone holds. The price action followed my analysis exactly as I expected it to here. After the bullish convergence the price moved higher further as per the plan and delivered 170+ pips move so far!

USDCHF – My idea here was “On the H1 chart, the price which was moving higher reached a strong resistance zone where the psychological level 1.00 coincides. The price respected this zone and has bounced lower from this zone. Also, the price which was moving higher has created a bearish divergence between the first high that has formed at 1.00367 and the second high that has formed at 1.00498 based on the MACD indicator. The price then moved lower and broke below the last low at 0.99609 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 and in addition to this, based on the Parabolic Sar we could see that the dots are above the price which we may consider as yet another evidence favoring the bears. So everything looks good here for the bears and basically, I expect short term bearish moves to happen here after pullbacks until the strong resistance zone holds”.

Current Scenario – Based on the above-mentioned analysis my short term view was bearish here and I was expecting the price to move lower further until the strong resistance zone holds. The price moved as per the plan here, after the bearish convergence we had a small pullback and then the price moved lower further delivering 180+ pips move so far!

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