Hello guys, welcome to this weeks market analysis where we go over all the setups that we are looking at for the upcoming week.
As you will see, most of the mentioned pairs are breakout and trend continuation trades. You also notice that our preferred style of entering those trades is on a pullback.
But, there is another valid option to enter those trades, and that is entering right on the breakout candle close or only waiting for a small pullback.
This is a more risky strategy because you will get caught in more false breakouts and placing stop loss is harder because there are no rejection candle wicks that you can orientate by. But at the same time, you won’t miss any breakout trades like we saw happen last week.
It all depends on what style of a trader you are and how much you are willing to risk.
Weekly trade ideas and analysis:
We’re looking at a potential trade short here. We are overall in a downtrend, and we see that the price broke a support area last week. If we get a pullback back into the area, we’ll start looking for a trade short.
EUR/USD has been trending down strongly since June last year, which means we are only looking for trades short.
Here we are in a strong bullish trend, so we won’t look for a trade short from the resistance area that we hit last week, but what we are looking for is a pullback back into the support area for an entry long from there.
Here we see that the price broke a support area last week, so this week we will wait for the price to make a pullback back into the area and we’ll look for a potential trade short and trade with the heavy bearish momentum.
Note: Just like last week, we see that some currencies are repeating. It’s never a good idea to trade multiple pairs with the same currencies. We recommend that you either only choose one, or spread the risk among them.
Good luck and see you in the next weeks analysis!