Hi Traders! Weekly summary and review June 4th, 2021 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 in this week and how it has currently developed now.
First, we will see the trade ideas that I shared in my blog:
Trading Ideas (Blog Posts)
USDJPY – My idea here was “In my point of view, on the H4 chart there are two possible scenarios, which are as follows:
The price might move higher from the current zone and reach the key resistance zone formed by the 100%(110.599) Fibonacci expansion level of the first wave, respect it and move lower from this zone. Alternatively if the price moves higher further, breaks and holds above the invalidation level (marked in red line) then this bearish view will be invalidated.
Alternatively if the price moves lower and if we get a valid breakout below the most recent uptrend line and the strong support zone, we may then consider it as a validation for the bearish view and then we may expect the price to continue lower further.
Current Scenario – Currently it looks like the price is moving as per scenario 1. Until the invalidation level holds my bearish expectation still remains the same here.
GBPAUD – My idea here was “On the H1 chart 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, we may consider this as evidence of bearish pressure. Currently, this strong support zone is acting as a strong resistance zone for us. We also have a bearish hidden divergence that has formed between the first high that has formed at 1.83888 and the second high that has formed at 1.83215 based on the MACD indicator which we may consider as another evidence of bearish pressure. Also we have a downtrend line that has formed and the price is holding below it, until this dynamic resistance holds my view remains bearish here and I expect the price to move lower further in the short term. If we get a valid breakout above this downtrend line then this short term bearish view will be invalidated”.
Current Scenario – In this pair my view was bearish and I was expecting the price to move lower further until the downtrend line holds. The price action didn’t follow my analysis here and this idea failed as the price moved higher and broke above the strong resistance zone and also we got a valid breakout above the downtrend line as well. I see these as contradictory signs opposing the bearish view. Thus the bearish view has got invalidated here, my current view on this pair is neutral.
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To your success,
Certified Financial Technician