Weekly Trades Summary January 22nd 2021

Hi Traders! Weekly Trades Summary January 22nd, 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)

CADJPY – My idea here was “On the H4 chart, the price has created a bearish divergence between the first high that has formed on 10th December 2020 and the second high that has formed on 14th January 2021 based on the MACD indicator. Then the price moved lower and broke below the low at  81.230 creating lower lows, thus forming a classical setup of bearish divergence followed by bearish convergence. Hence as per the book scenario, after a bearish convergence, we may look for corrections to happen and then further continuation to the downside. Currently, it looks like the correction that we were looking for is happening. In addition to this based on the Stochastic Oscillator, we could see that the price has reached its extreme which we may consider as evidence of bearish pressure. Until the top of the daily range holds my view remains bearish here and I expect the price to move lower further”.

Current Scenario – Based on the above-mentioned analysis my view was bearish here until the top of the daily range holds. The price moved higher respected the top of the range and is currently moving lower from this zone. My bearish view still remains the same here.

 

 

EURCAD – 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 has happened. In addition to this, we had a bearish hidden divergence that has formed between the first high that has formed on 11th January 2021 and the second high that has formed on 19th January 2021 based on the MACD indicator, we may consider this as another evidence of bearish pressure.  Also, 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. Currently, this strong support zone is acting as a strong resistance zone for us. Until this strong resistance zone holds my view remains bearish here and I expect the price to continue lower further”.

Current Scenario – On the H4 chart, the price action followed my analysis exactly as I expected it to. After the bearish trend pattern, we had a pullback with the price reaching the strong resistance zone, respected it, and moved lower further delivering around 130+ pips move until it was blocked by a bullish divergence.

You can find a detailed explanation regarding this here: EURCAD Forecast Follow Up and Update

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

 

USDJPY – My idea here was “On the H4 chart currently, it looks like a correction is happening in the form of a double wave down. We also have a bullish hidden divergence that has formed between the first low that has formed at 102.588 and the second low that has formed at 103.520 based on the MACD indicator which we may consider as evidence of bullish pressure. The price is also creating a potential bullish divergence based on the MACD indicator. In addition to this based on the Stochastic Oscillator, we could see that the price has reached its extreme and there are no signs opposing this bullish view. Also, we had a strong resistance zone that had formed and the price which is moving higher has broken above this strong resistance zone and is holding above it. Currently, this strong resistance zone is acting as a strong support zone for us. Until this strong support zone holds my view remains bullish here and I expect the price to move higher further”.

Current Scenario – My plan still remains the same here, that is until the strong support zone holds my view remains bullish and I expect the price to move higher further.

 

 

Trading Ideas (Trading View Posts)

USDCHF – My idea here was as follows:

Current Scenario – My bullish view didn’t change here. Until the strong support zone shown in the screenshot below holds, I expect the price to continue higher further.

 

 

AUDJPY – My idea here was as follows:

Current Scenario – On the H4 chart the price action follows the bearish expectations and my view remains bearish here.

 

 

EURUSD – My idea here was as follows:

Current Scenario – On the H1 chart after the bearish trend pattern currently it looks like a correction is happening in the form of a double wave to the upside. Until the strong resistance zone shown in the screenshot below holds my view remains bearish here.

Note: You can follow me here on Trading View and also on my blog to get similar ideas on daily basis)

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