Session Recap trade of the week
- #22,522
- Feb 4, 2016 5:15am Feb 4, 2016 5:15am
- | Commercial User | Joined Feb 2010 | 14,361 Posts
The AUDUSD surged heavily to the upside straight towards 0.7150-80 as I have analysed on Session Recap webinar, making it definitely the trade of the week. My guess is that RBA is not so happy with recent AUD strength as divergence between commodity prices and currency is not good for AUD.
Currently we can see a huge HIDDEN BEARISH DIVERGENCE which should follow the main 4H trend which is still bearish. The price has made both high and low and its getting within POC zone in the form of a retracement (78.6, historical breakout retest patterns, bearish order blocks). The zone is 0.7220-45. What traders should look for is – bearish reversal patterns. The logic is simple – as long as we have a divergence we need a trigger for it. The trigger is any of Bearish reversal patterns. Have in mind that even if the price proceeds above POC but the bearish pattern shows IN THE ZONE, it will still be a valid trigger. A good pattern would be a shooting star or a dark cloud cover.
If we get a pattern within POC zone, the pair could drop targeting 0.7140 (H3 support) and 0.7070 (50.0, EMA89 confluence). Have in mind that for the bearish pattern trigger to be valid, the hidden bearish divergence should still be visible on the chart.
Currently we can see a huge HIDDEN BEARISH DIVERGENCE which should follow the main 4H trend which is still bearish. The price has made both high and low and its getting within POC zone in the form of a retracement (78.6, historical breakout retest patterns, bearish order blocks). The zone is 0.7220-45. What traders should look for is – bearish reversal patterns. The logic is simple – as long as we have a divergence we need a trigger for it. The trigger is any of Bearish reversal patterns. Have in mind that even if the price proceeds above POC but the bearish pattern shows IN THE ZONE, it will still be a valid trigger. A good pattern would be a shooting star or a dark cloud cover.
If we get a pattern within POC zone, the pair could drop targeting 0.7140 (H3 support) and 0.7070 (50.0, EMA89 confluence). Have in mind that for the bearish pattern trigger to be valid, the hidden bearish divergence should still be visible on the chart.
- #22,523
- Feb 4, 2016 5:40am Feb 4, 2016 5:40am
- Joined Dec 2008 | Status: Trader | 2,931 Posts
persistence and determination alone are omnipotent
- #22,529
- Edited 9:23am Feb 5, 2016 9:08am | Edited 9:23am
- | Commercial User | Joined Feb 2010 | 14,361 Posts
PRE NFP EURUSD ANALYSIS. READ FULL ANALYSIS HERE {image}
- #22,530
- Feb 7, 2016 10:22am Feb 7, 2016 10:22am
- | Commercial User | Joined Feb 2010 | 14,361 Posts
Hi traders,
I have published an interesting article for you to read if you have the time. You can read it here
I have published an interesting article for you to read if you have the time. You can read it here
- #22,532
- Feb 8, 2016 8:45am Feb 8, 2016 8:45am
- | Commercial User | Joined Feb 2010 | 14,361 Posts
The GBPUSD has spiked above 1.4600 zone and as I have shown in the latest AUDUSD coverage very often a retracement is mistaken for a trend change which is wrong. Similarly to AUDUSD (which has perfectly rejected from POC making 180 possible pips), the GBPUSD is in a similar situation. Any retracement towards POC zone could be considered another sell into rally with the 1.4255-40 as the target zone.
POC (Xcross, 50.0, EMA89, Bearish order block) comes within 1.4500-10 zone. Rejections from the zone target 1.4375 and 1.4240. Around 1.4240 the price might bounce making another retracement to the upside. A strong 1H momentum or 4h close below 1.4375 should also tank the price towards 1.4240.
POC (Xcross, 50.0, EMA89, Bearish order block) comes within 1.4500-10 zone. Rejections from the zone target 1.4375 and 1.4240. Around 1.4240 the price might bounce making another retracement to the upside. A strong 1H momentum or 4h close below 1.4375 should also tank the price towards 1.4240.
