Hello guys and welcome to this weeks market analysis where we analyse the setups that we are looking at for the upcoming week.
If you have any questions regarding the setups, please leave a comment and we will reply to you as soon as possible!
AUD/NZD Daily:
On our first setup of the week, we see that the price has stalled for quite a while on this relatively strong S/R area. But last week it finally broke it. This is where a potential setup has formed for us. If we get a retrace back into the area and see bullish price-action, we will look for long trade opportunities.
EUR/NZD Daily:
Similarly to our previous pair, here we also have a strong break of the S/R area where the price has been stalling for a while. We are again looking for a retrace back into the S/R area and a potential trade long if we see good price action.
GBP/USD Daily:
Last week we were looking for a long trade on this pair after we saw a break of the long-term trend line, but it turned out that it was a false breakout and we formed an engulfing pattern on the weekly timeframe. Now our bias has switched to short and we will look for the price to push a little lower, and then make a retrace back into the trend line, which also aligns with the S//R area. If we see the price rejecting that area, we will look for trades short, as the price would make a lower high as well, which would show even more bearish bias in the market.
NZD/CHF Daily:
This is another simple breakout and a retrace trade that we are looking at for the upcoming week. The last candle made a strong breakout through the support area and we will look for a pullback back into the area and then a potential trade short if we get good price action.
NZD/JPY Daily:
This setup is a bit more complicated and riskier than the others. There are two ways of playing this trade out.
The first way would be to wait for bullish price action at the support area and enter a trade long.
The second option, which we would prefer, would be to wait for a breakout of the trend line and the support area and enter a trade short, most likely on a retrace. We would prefer that because we are seeing strong bearish momentum and entering long wouldn’t be the safest idea.
Note:
Four of the five pairs include the NZD, that’s why you should be cautious when trading those setups. If you enter the trade, we suggest that you only enter one of the pairs with NZD or that you divide your money between them.