rally

Hello again,

At first glance the high volatility in some pairs at the end of last week should have given us some nice trading opportunities at the beginning of this week, however when we approached the charts there was no clear immediate trading setup we could follow.

On the JPY pairs the downtrend seems strong and most likely not complete, however short-term opportunities for LONG trades were there (signaled by trendline breaks and 1-2-3 setups on the larger EW outlook). EURUSD and GBPUSD seemed particularly confusing, with short confirmations not yet triggered but bullish momentum apparently weakening.

USDCHF and EURCHF seemed on the path of a retracement after the strong CHF rally recently (by the time of this writing USDCHF already confirmed the move up).

USDCAD remains in consolidation/retracement, with 200MA on 1h possibly providing short-term resistance.

Right now, looking for EURUSD to start a decline after the failure to sustain the rally above 1.5270 yesterday. USDCHF might follow the same path (up) if the CHF remains into consolidation in short-term, so these are the pairs likely to give interesting setups later in the day.

Will follow these setups in our Live Trading Room and look for trading opportunities.

Happy trading everyone!

Hi again everybody!

London open today found the market in great turmoil, after a rally in almost all dollar pairs sent the greenback to record lows. The USD is now trading around 1.5080 versus the EUR and above 1.99 vs. the GBP.  We were not in the room to catch the moves but the aftermath is equally interesting.

The pairs we mostly focused on are USDJPY, EURCHF and USDCAD, all of which present nice bearish opportunities with EW confirmations short. We are still waiting for USDJPY and USDCAD to pull back before we sell, but we are already short on EURCHF based on a EW setup in mid-term:SELL from 1.6083, stop at 1.6135 ad target down at 1.5750. We will manage the trade if it goes our way and adjust stop and target when this seems appropriate.

EURUSD and GBPUSD are still in bullish motion and there is no sign yet that this is over, however we anticipate a pause in the rally in the 1.51 area / 2.0020.

Happy trading!

We started the London session today with a look at GBPUSD and AUDUSD, both pairs were displaying bullish formations (EW / 1-2-3 on several timeframes), with other technicals on 4h and 1D giving further hints of a possible rally up. We were able to identify 2 trading setups for GBPUSD, one of which confirmed later before the cable rally. Also, we identified a bullish setup in GBPJPY just before the breakout, however got stopped out for a few pips (5m and 1m entry, with low risk). EURUSD was perfectly flat at the time. We also analyzed a possible bearish setup on USDCAD based on range breakout and 200MA resistance on 15m (target 1.0140 already hit), but we did not take the position.