Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.
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As I mentioned last two weeks , EURUSD holds below 1.1475 area as confluence of resistance . Confluences of resistance has been my trading strategy for a long time, because there is always a little risk and big reward . as you can see in the chart, an engulfing candle stick pattern created right below 1.1475 area. I see EURUSD trading sideways for a while between 1.1475 and 1.1217 unless one side get the lead and break through. Fundamentally next year EUR may rise rates if the economics get better and achieve central banks target and as you see last week USD rate rising doesn’t surprise the market anymore. That doesn’t mean USD is getting weak , any close below 1.1217 will open the gates to 1.1126 area.
Last week I mentioned 1.2700 area as main resistance for GBPUSD , and as you can see ,it trades just below that whole time. Next target for bearish camp would be 1.2480 as a really great confluence of support. Through beginner’s lessens we discuss confluences of support and resistance as our main price action strategy. Any kind of bullish candle stick confirmation from that area will convince me to go long for a while.
I expected this trend line to break for a long time, and finally it did break it. Now I think it’s going to trade sideways with a bearish outlook. I don’t expect any rising soon. another touch of the trend line would be possible but failing to break 112.15 area would be another sell signal. For advanced Forex learners who likes pyramid trading , it would be another opportunity to add more shorts. Trading between 111.62 and 110.37 is expected during this week.
USDCAD breaks channel resistance one more time and hit a strong resistance at 1.3595 after a long time. Breaking higher is highly unlikely and i don’t expect it, but if it happens next stop would be 1.3770 area as main reversal point. I believe it will trade this week over the trend line during next week, but any break below would make this as a fake break out. we have a complete lesson about fake break outs in advanced lessons. Mostly places to stop , if it reverse from this area, would be 1.3354 and 1.3165.
Crude oil prices falling sharply for last few weeks, and it’s the main leader of USDCAD too. As you know Canada is one of the biggest oil producers in the world and their economy highly related to oil prices. I expected 44.78 area to act as a great support. Any kind of reversal pattern would confirm this area as new floor for oil price area.
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