Yesterday we saw price break and close below our 150.00 level signaling we could see price meet our next support level. This morning we have seen price revisit our resistance level which has been respected and also we can see a price rejection from our 8EMA telling us to go short. Pulled the trigger.
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Last week we saw price form HL at our monthly support level shortly after making a strong bull run back towards our weekly mid-range where we found resistance. Today we have seen a small back and have found support at previous high.
I am expecting the price to break above weekly midrange and head towards our next key monthly level which is 1.50. Will be letting this trade run as long as we have a clean break of our midrange. Target will be FIB extension D2.
Please find above image the trade I’ve taken
I have also attached some longer-term analysis for this pair below
From my weekly breakdown, you can see I am expecting the price to revisit 150 and potentially break this level as we are due a PB. What I have seen for me to take this setup was a CTL break, we have seen price push back above TL on Friday but we managed to then close back below with a shooting star candle confirming the break. Sunday we saw a small gap down then price made its way back to test CTL break as resistance.
We saw price stall around CTL resistance. My entry was taken of the highlighted area as I saw a reversal formation signaling we will see some downside momentum
What can we see on GJ? We have recently seen GJ achieve weekly midrange and also FIB extension D1. We can see that GJ has been overbought and has mad an impressive bullish run with very few pauses due to rumors of an interest rate increase. For me, I am expecting a downside rollover from this pair. We can see from the weekly timeframe we are seeing exhaustion, and have also formed a 3 pin and last weeks candle being a spinning top. If we take a look at the daily timeframe we can an engulfing pattern formed at weekly midrange and price pushed back to the downside finding support again at our key monthly level 1.50. At the back end of last week, we saw another push to the upside but price failed to break daily resistance, Is this a sign of our first LH’s? We are currently resting on our 8EMA as support.
H4 time frame is pretty messy, but for me I will only look to buy this pair when we achieve a deeper PB but for now I will be monitoring for some short-term countertrend sells, for example, if we can see a break below 1.50 and retest I will be looking to sell once we have seen a bearish continuation pattern. The first target would be next daily support level.
So, Last week we saw EURCAD make a down move from our weekly midrange and find support at monthly support level 1.45 which is also an HL. We have seen a bullish candle closure on the weekly time frame which also closes above 8EMA. We can see that price respected 1.45 and then closed bullish which also nearly engulfed previous candle and closure above 8EMA. We can also see that price has failed to close below 61.8 on Daily timeframe supporting our theory for longs.
If we look closer on H4 we can see that price is now forming HL’s, and currently trading above MA. We have found resistance again at 1.4725 weekly mid-range. I am only looking to long on this pair so will be looking for buying opportunities around our daily support level and high structure supports or a break, retest continuation of weekly mid-range. I expect price to fulfill both FIB extension targets this week if we can break MIDRANGE.
If we see a gap above mid-range i will be buying this pair.
We have seen price form LH at daily resistance, next level I believe that’s going to be met is our monthly support 150. I will be looking to hold my position if we can break 150. if we manage to break my next target will be FIB D1 extension 148.4. Bearish engulfing formation on H2 plus MA breaker also we can see a potential H & S with 150 being the neckline.
TP 1: 150.050
I’ve been waiting for this setup for a while which I have just been triggered into. Looking at weekly time frame we can see the price has formed HL at monthly support level 1.45 which also aligns with our FIB level 61.8. Scaling down to our daily time frame we can see the price has reversed from this level indicating we are going to see a reversal to the upside. We have broken above MA and seen MA cross on the daily TF. I was looking for an entry at our daily support level 1.45871 as this is our preferred FIB reversal zone.
TP 1: 1.48564
TP 2: 1.49684