As promised, here is the analysis of the currency pairs I’m currently looking for trade opportunities.
Disclaimer: These are just the pairs that I’m going to trade (looking for trades), this should not be taken as trade recommendations. If you don’t agree with this, please stop reading now and close this window.
This is how I analyze the market
First I analyze the long term charts and look for the currency pairs that have the clearest market condition (clear swings and S&R levels).
Once I have a clear market condition, I look for my entries on the short term charts.
So when I say bullish condition, it means that it is more likely to continue is way up, and I will look for long opportunities (It DOES NOT mean to trade it right where it is ok?).
When I say bearish condition, it only means that the market its likely to continue its way down, and I will look for short opportunities.
Once I have a clear market condition, I try to find clear S&R levels on the short term charts to define my entries.
Is it clear?
Please do let me know if you have any question, because I’m going to send you my analysis everyday this week.
Remember, blue levels are long term levels and the green ones are short term levels.
Ok, now lets take a look at some charts.
As you can see in the following chart, the AUDCAD is trading in a very clear bullish condition, that means that I’ll be looking for long opportunities:
Now, since it is trading in a very clear bullish condition, I need to look for my long entries on the short term charts… In order to have a plan I need to look for ST S&R levels…
Here is how the ST chart looks like:
The AUDCAD has clear ST S&R levels, it has been rejected from the top of the ST range, so my plan is to wait for the market to reach the bottom of the range, if I get a significant pattern my upward pressure I’ll go long.
We’ll see what happens tomorrow.
The GBPJPY is another currency pair where I’m currently looking for trade opportunities.
In this case, it is trading in a bearish condition (since it was rejected from the top of the range), and it is likely to continue moving down, until if hits the next LT support level around 161.25
Now, in this case we need to be careful because it might retrace back to the ST resistance level around 168.16, here is the chart:
And basically, that’s what I looking for.
Unless we get a new range, I’ll take advantage of it and trade off there.
I’ll keep you updated.
The NZDUSD is about to break the LT support level around 0.8099, here is the chart:
But as you already know, we CANNOT confirm a breakout by just looking at the long term charts, we need to confirm this breakout also on the short term charts.
How do we do this?
Remember every time the market gets close to an important LT level, it tends to range, and we need to also confirm the breakout of that range on the ST charts. So here it is:
As you can see, we still need to confirm the breakout of the ST support level to start looking for short opportunities… se we need to patiently wait for the market to confirm that level for us.
And once we get that confirmation, we’ll have more than 250 pips before we hit the next level… So it’s going to be good for us if we do get that confirmation!
You can guess what’s the market condition by just looking at that chart cant you?
You are right, since it broke through the LT support level, it is likely to continue going down until it hits the next LT support level around 88.55
So we need to look for short opportunities here.
Here is the ST chart:
So basically I’m waiting for another retracement to the ST resistance level, and if I get a significant pattern with downward pressure I’ll go short.
That would be my plan for the CADJPY.
Today its a weird day, on most cases I’m waiting for retracement… most of the time I get both: retracement and breakout signals… but not today :(
Breakout signals are easier because you dont have to be in front of your computer to trade it, you can just leave a entry order (stop order most likely) and step away.
Any way, that’s how the market is sometimes…
GBPCAD trade update, as most of you already know, I got stopped out at a profit on that trade.
GBPAUD update, we were waiting for clearer levels on the short term chart, and never got them, so no trade.
Please let me know if this analysis was useful for you? Do you want me to keep using the same format for the next few days? Please give me your feedback!
What do you think about my analysis?
What other currency pairs are you currently monitoring.
Please leave a comment.