Hello guys, welcome to this weeks market analysis where we cover the setups that we are looking at for the upcoming week.
Weekly trade ideas and analysis:
Our first setup of the week is EUR/AUD.
Looking at the daily timeframe, it looks like we have already missed this setup after the engulfing pattern. But, when we go to the 4h timeframe, we see the price forming a nice downtrend pattern. And that gave us an excellent opportunity for an entry on a lower timeframe.
We know that the previous lower low can act as resistance when the price makes a pullback. We will look for the price to push back into the previous lower low and give us bearish price action, which would confirm our entry.
Here we saw the price break a S/R area and made a nice slow pullback back into the area.
The price has only formed an indecision candle, which is not good enough for us. We will look for a bullish candlestick pattern to appear. We see two options;
1. A long wick rejection candle.
2. An engulfing candle that would engulf the previous two candles and with that form a morning star candlestick pattern, which is also a bullish pattern.
If we get either of those, that will confirm our setup and we’ll look for an entry.