Hello, merchants! I hope you still feel good in the markets! Last week didn’t offer exactly the explosive market movement I’ve always been looking for. However, this had to be expected as we did not have many important events to feed the astronomy of . There were a step or two that wasn’t too bad, I think. The new S&A P 500 hit an all-time high on Thursday and followed the same on Friday. The euro had a rather disappointing week, returning 151 pips against the US dollar.
I’m excited about the week ahead. We have a lot of economic data from many countries, such as Japan, China, Australia, the United States, the United Kingdom, the eurozone, and Germany. These famous events include , retail sales, GDP, PPI, and employment figures. In addition to these data points, we also have testimony from chair on Tuesday and Wednesday, which could cause significant market volatility. I hope we get some little moves from these events!
Let’s see where we can make a good profit, right?
USD weekly chart
The Euro bears cut back this week, almost taking the previous week’s low from the EUR / USD. The pair managed to close below its 20-week exponential moving average, which opens up the likelihood of further decline in the coming weeks. I wouldn’t be surprised if the pair switched to the 2017 low, which was set on January 3, though it may take a few weeks to get there. I’m looking for short opportunities and will keep you informed of how the techniques will evolve in the coming days. My first interest in a short entry is the the 20-day exponential region . Check out this daily chart:
USD daily chart
The blue line is the 20-EMA, which often acts as a dynamic resistor to . The plan is to wait until the price returns to this red circle near the 20-EMA and then observe price activity in this area to see if there is any rejection candle on the daily graph or on smaller time frames such as 4 hours or hourly charts. Rejection candles, like pins or bear-absorbing rods, are what I’m looking for. It is also capable of two column switching patterns. Like I said, I’ll let you know if I see anything meaningful.
As shown in the figure above, the index (set for 5 periods with levels 15 and 85) was relatively . This confirms that we have to wait a bit before we take short positions. More likely short entries usually occur when the RSI value is greater than 50, and preferably in the range of 70 to 90. Keep in mind that the setting I use is not the standard setting, and that RSI works best when combined with other technical indicators and candlestick starters.
USD / CAD – still bear
The USD / CAD jumped higher last week, but failed the 20-week exponential moving average. This short page now seems even more appealing.
Canadian labor market data came in much better than expected on Friday, which is really positive for the Canadian economy. This, along with creeping oil prices, could further strengthen the Canadian dollar in the short to medium term. The technical data also suggest a further decline in the USD / CAD exchange rate. Keep in mind that the USD / CAD will move lower as the Canadian dollar strengthens against the US dollar.
Let’s look at the daily chart of USD / CAD:
CAD napi diagram
Here you can see that the price closed again below the 200-day moving average and the 20-day exponential moving average on Friday. I think we will come across great sales opportunities on this couple in the coming days.
GBP / USD – trading site, but for how long?
USD daily chart
GBP / USD currently supports 20-EMA. If 20-EMA counts as dynamic support in the coming days and weeks, we can see a strong rebound in this pair.
If you are trading with this pair, you need to keep the important Brexit headlines open. The font is currently very sensitive to news on the subject. For now, I support the top, although GBP / USD is not my favorite trade at the moment. I like to trade devices with trends like the S&P 500:
S&P 500 napi diagram
I don’t really have to say about this stock index. This chart speaks for itself. The price goes easily and the 20-EMA acts as a strong dynamic support. The price is at the moment, and if you’re looking for a perfectly timed long post, you might want to wait until the price gets closer to 20-EMA before you enter.
I will continue to hold long positions in this index and reap the benefits of trading with a strong trend.
That’s all for today’s people. Join us for further market analysis and have a brilliant week in the markets!
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