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 pair of the week is EUR/CHF. On the daily timeframe, we saw the price make a strong break of the support area and is now making a pullback. We are seeing multiple long wick candles rejecting the area. Which confirms our short setup.
We will be entering this trade on the 4h timeframe. Here is why;
Looking at the 4h timeframe, the pullback from the daily formed a triangle pattern. When the price breaks that pattern (to the downside), we’ll be looking for an entry.
Our next setup is slightly more risky, because we are seeing strong bearish momentum approaching the area. We want to see loss of momentum.
Since this is a strong S/R area and price also aligns with the 50 EMA. We will consider this a potential setup, but we will be waiting for strong bullish price action before we enter this trade long.
Thank you for reading and don’t hesitate to ask if you have any questions!