Review of Week

Hi Dynamic Traders

I hope you're all enjoying the weekend! I also hope you've made time for your weekly analysis, assessment of current trades and new opportunities.

I'd like to do a review of the posts from this past week, to see how things have developed, or not as may be the case.

EURAUD was mentioned on Monday's blog and there was a potential continuation downwards on the horizon. As you can see we haven't seen that much develop with this pair. After such a long move down, it's expected that price will inevitably consolidate. Price seems to be finding comfort at the 17,000 region and continues to test the S/R zone area as resistance. By checking in on the weekly chart, you will see that the past few weeks have been quite small candles and ideally we're looking for momentum to pick up strength for whatever move this pair decides to do next! Let's see what the week ahead brings us.

Moving on to AUDJPY, our squeeze formation is still continuing and will be forced to make a decision very soon as to which direction it will go. Of course we can weigh up our odds and make our assessments, but we must always be patient and await for the market to dictate it's move. We did see a test of the upper TL, but didn't have the break and close needed to potentially enter for a continuation on the upside. So will the squeeze break upwards and continue with the current trend? Should this be the case, the conservative traders may want to wait for a break of the previous high before entering. Of course we may see price breakdown, although we do have the VI looming below which will surely act as support. Do check in on the weekly timeframe to furnish you with more insight. One to continue keeping on the watchlist!

USDCAD, mentioned on Wednesday is a similar story. We're seeing price wedge between the S and TL and we saw a fbo which tested the low and then retreated. Also take note of Friday's candle -indicating that sellers may still be in control! Again price is being squeezed into making a decision and as SM we'll be awaiting it's next move, armed and ready to take the appropriate action.

Overall, these pairs haven't seen any big moves this week for the swing trader, but that's how trading goes! This serves as a great reminder of the importance to be patient - you might be ready to trade but the markets might not be ready for you! Always remain neutral and don't have any expectations of the market.

Let's await and see how the market unfolds this week.

Here's to great trading for the week ahead!

Sonia Molina