Greetings Forex Traders,
Hope you are having an outstanding weekend. My weekend has been one of taking check of where I am and whether I am on track to get to my goals.
The review below is of currencies I have posted previously. These include the AUDJPY, Loonie and GBPCHF.AUDJPY
At the point of my last post
on this currency pair the price was at 68.82 and facing a strong resistance level. It managed to break thorough on the 4th attempt (240 chart) and went up to 72.32 (350 pips). Will price continue to rally?
The chart below shows that price has broken through the resistance line with a large bullish bar but is now the in company of the VI and a RN. Coupled with these items, there are two other confluences, MACD divergence and a candle in the form of a hanging man. You will see that MACD divergence has also formed on the 4 hour chart below. Bearing all this in mind it is possible for the price to have a breather or reverse in the short term before a continuation or rally.
The Loonie on the last post
was showing signs of a double top. It in fact continued north closer to a more significant pivot area and then retreated some 500 pips.
Price is now heading towards a support zone, is displaying a reversal candle and is close to a RN. All these signs suggest that if already in the trade, tighten your stops to protect your profit, if not in the trade, keep it on the watchlist for a possible reversal. It is the fourth time that price will now be testing the trendline support (visible on a daily chart) as it gets closer to the RN. Note although we do not necessarily have HHs, we do have LLs each time price does a bounce off the trendline support.
The daily chart for the GBPCHF shows a nice clear triangle breakout with not too many hurdles before the next resistance level. Is it as good as it looks? A look at a lower timeframe is required I think...
The 240 timeframe shows price at a previous resistance level and a potential double top formation. In addition MACD is diverging and note the proximity to a RN, these may be additional confluences to confirm a reversal albeit temporary. I will wait to see is price breaks through the resistance and apply my ESLT filter to go long or wait for the breather to complete and start following the shorter term trend (to confirm this you may consider looking at the HH and LLs).
Labels: audjpy, audusd, usdcad