Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and review of March 17th 2023 is here. It is now time to recap and summarize the trade setups that we had during this week. Below you will find a short explanation of all the trade setups we had this week and how it has currently developed now.

Trading Ideas (Blog Posts)

EURNZD – My idea here was “On the H1 chart, we have a bearish divergence that has formed between the first high which has formed at 1.73772 and the second high which has formed at 1.74007 based on the MACD indicator. The price then moved lower and broke below the last low at 1.72554 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider this as evidence of bearish pressure. As per the book scenario after a bearish convergence, we may expect corrections and then a 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 another evidence of bearish pressure. Also, the price has also broken below the most recent uptrend line which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and until the strong resistance zone (marked in red) shown in the image below holds my short-term view remains bearish here and I expect the price to move lower further”.

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 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, the pullback that I was looking for happened and then the price moved lower further as I expected it to, delivering 330+ pips move so far!

CHFJPY – My idea here was “On the H4 chart, we have a bearish divergence that has formed between the first high formed on 15th February 2023 and the second high formed on 10th March 2023 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, the price which was moving lower has broken below the most recent uptrend line, which we may consider as another evidence of bearish pressure. Also, we have this uptrend line breakout on the RSI indicator as well, which we may consider as yet another evidence of bearish pressure. So based on all this, until the strong resistance zone (marked in red) shown in the image below holds my short-term view remains bearish here and I expect the price to move lower further”.

Current Scenario – In this pair, I was expecting the price to move lower further in the short term until the strong resistance zone holds. The price action followed my analysis exactly as I expected it to. After the breakout of the most recent uptrend line the price moved lower further and delivered 270+ pips move so far!

GBPCHF – My idea here was “Looking at the H1 chart, we could see that the price which was moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. In addition to this, based on the Stochastic Oscillator we could see that the price has reached it’s extreme, which we may consider as yet another evidence of bullish pressure. Also, we had two strong resistance zones that have 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. So based on all this, until both these strong support zones shown in the image below(marked in green) hold my short-term view remains bullish here and I expect the price to move higher further after pullbacks”.

Current Scenario – In GBPCHF my short-term view was bullish and I was expecting the price to move higher further until the two strong support zones hold. The price moved as per the plan here. The price which was moving lower reached the first strong support zone, respected it and bounced higher from this zone and delivered 120+ pips move!

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