EURUSD inverse head & shoulder pattern on H4

EURUSD inverse head & shoulder pattern on H4

EURUSD staged a massive rally last week and has closed the week above 1.1600 level. This upward movement has been largely due to USD weakness rather than EURO strength. We can see an interesting pattern on the 4-hour time frame. It is an inverse head & shoulder pattern. This is a very bullish sign for the pair, especially when there are signs that USD may further weaken. Trading preference The preference is to buy the pair, especially if it can break above 1.1630 level (Friday high). Recommended forex brokers

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XAUUSD forms a bullish harami 27-Aug-2018

XAUUSD forms a bullish harami 27-Aug-2018

A bullish harami has formed on the weekly chart of price of Gold. This is a bullish sign. Gold closed the week above the important level of 1200. The market has bounced from this area previously. We can also see that this move has broken the up trendline on 4-hour charts. Trading preference It is possible that Gold is getting ready to rally as USD is expected to weaken. If you are entering on the H4 chart, it is a good idea to see if there is a retest of…

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AUDUSD trading idea for the week of 27-August-2018

AUDUSD trading idea for the week of 27-August-2018

During the week of 19 August 2018, we saw that Australian Dollar rallied initially but fell vigorously due to political uncertainty in Australia. As the situation has been solved, so has Australian Dollar recovered on Friday. Even with all the trouble, AUDUSD did not fall below the tail of the previous week’s hammer. Fundamentals Analysis After Fed Chair Powell speech on Friday, US Dollar weakened, Gold has shown signs of beginning to rally. This is bullish for the Australian Dollar. At this point, the tariff warn between USA and China…

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AUDUSD trading idea for the week of 14-May-2018

AUDUSD trading idea for the week of 14-May-2018

AUDUSD fell during the first three days of the last week but found support underneath the 0.7500 important support area. It then rallied back and formed a long hammer for the week. This hammer has been preceded by a hammer from the previous week as well. This could mean that the pair can now go and re-rest the up trend line that has been broker the previous week. Trading Preference The preference at this moment is to buy the pair as we can also anticipate a corrective move of USD…

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GBPUSD Trading idea for the week of 7-May-2018

GBPUSD Trading idea for the week of 7-May-2018

GBPUSD has fallen rather significantly for three consecutive weeks, and we can see that an important uptrend has been broken. This is a very important development for this pair. Week economic data from UK has contributed to this, in addition to the strength of US Dollar. Trading Preference Preference is to sell the pair. It is possible that the pair can bounce up and test the trend line before the continuation of the move to the downside. However, break below last week’s low can also be a good opportunity to…

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AUDUSD trading idea for the week of 7-May-2018

AUDUSD trading idea for the week of 7-May-2018

AUDUSD traded around 0.7500 which is an important area of support. At times the dips went as low as 0.74725. However the break below the support was not sustained and hence the pair bounced back above 0.7500. When we look at the weekly chart, this has been translated into a hammer. Trading preference The hammer is bullish sign, therefore it is possible that the pair can go to test the uptrend line before continuing its fall towards support and even below after that. The preference of trading at this point…

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GBPUSD analysis for the week of 30-April-2018 – testing the support

GBPUSD analysis for the week of 30-April-2018 – testing the support

GBPUSD has fallen for two consecutive weeks. The fall was rather drastic on Friday due to the weak GDP data from UK. We can see that this week’s action will be crucial for the direction of the pair. It could soon test the uptrend line that we have been observing for quite some time now. If the trendline is broken to the downside it could send the pair much lower. This could happen if the fundamentals from UK disappoints again in the coming week, and/or due to the strength of…

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AUDUSD analysis – Weekly uptrend lines broken

AUDUSD analysis – Weekly uptrend lines broken

The trading week of 23-27 April 2018 has been significant for the AUDUSD pair. A major weekly uptrend line that has held since the late 2015 has been broken. It looks like there may be a pull back to test the trendline and then continue the move downwards. There is another support just below around 0.7500 area. If that is broken, the pair can unwind to the downside rather quickly. Trading preference At this moment the preference is to short the pair once the up trendline has been tested and…

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USDCAD trading idea for the week of 23-April-2018

USDCAD trading idea for the week of 23-April-2018

This currency pair initially fell during the week but then found support around 1.25. This coincided with the interest rate announcement from Canada. Since then the pair has rallied for 3 consecutive days, and accelerated further due to the weak retail sales and CPI data from Canada on Friday. Those who think that Canadian Dollar will always rally when Crude oil price goes up, should realize that the fundamentals from the economy is also equally important. We are beginning to see the weakness in Canadian economy at the moment. It…

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GBPUSD Trading idea for the week of 23-April-2018

GBPUSD Trading idea for the week of 23-April-2018

GBPUSD pair initially tried to rally, but rolled over and has fallen for 3 consecutive days beginning on Wednesday. This was due to the disappointing CPI data on Wednesday and the equally disappointing retail sales data on Thursday. The pair closed the week a handful of pips above 1.4000 level. This level could offer a bit of a support, but can easily break due to the weak fundamentals. Therefore it looks like if anything could provide support, it will be the up trendlines as shown below. Trading Preference We need…

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