The GBPJPY is trading in a bullish market condition, earlier this morning the GBPJPY broke through the short term resistance level triggering a bullish MC. What is most interesting though is the weekly chart:
The GBPJPY is trading near a W support level, and the next LT level is at 150.44… so what do you think? Would you hold your trade for a month for the possibility to get 900 pips??? Tricky isn’t it? Remember we are talking about the weekly chart here, and there are 1D levels in between.
After the wild swings we saw last Friday because of the NFP announcement, there are some good opportunities this week, one of those is the GBPCHF:
It is trading in a bearish market condition, just below the LT support level and below the ST range, meaning that only short opportunities are in play in the GBPCHF. We have plenty of room before it hits the next LT support level.
As long as the GBPCHF trades below 1.6745 I will be looking for short opportunities.
Interesting isn’t it? The GBPCHF is trading in a very well defined long term range, if you look at this in the weekly chart you’ll see it even clearer. What caught my attention though is the downward pressure present just at the top of the range. Right now we are already in a bearish market condition and I will be looking for short trade opportunities (until we hit the next LT level, but why not, I would be willing to hold my trade for the bottom of the range if there is enough momentum, it could take a while though… see how many days it took the GBPCHF to go from bottom to top?).
The EURAUD is in a clear bearish market condition, but where is the next LT support level? (Where we are supposed to set our TP orders). Well, we need go back to June 2000 in order to get the next level, so I guess we net to get it from the monthly chart…
As long as the EURAUD trades below 1.5510 I will be looking for short opportunities.
The GBPCHF traded near a long term support level (it even broke that level and traded in a bearish market condition for a few hours, but it is back now) for a few days but today it broke that range for the upside triggering a bullish market condition:
Now it is in a clear bullish market condition and there are quite a few pips before the market hits the next LT lvl.
My Trading Plan:
As long as the GBPCHF trades 1.6516 I will be looking for long opportunities.
The EURJPY broke an important resistance level and it will probably head to the next LT resistance level. If we take a look at the weekly chart, we’ll see the it has a long way to go before the market hit the next 1W resistance level:
You got to be careful though, keep in mind that we are talking about the weekly chart and it could take a while before the market hits this resistance level. I would say at least two weeks, but If you trade the long term charts, I would recommend you to look for long trade opportunities (in your own risk of course).