Trading Plan for the Coming Week
You know each pair consists of 2 currencies. If you are going to trade a pair, you should know how powerful each currency is depending on the time frame you use for trading. If both currencies moving in the same direction, then you should not trade that pair. For example, if both EUR and USD are getting weaker then trading that pair is not a good idea where you can find other currencies that are moving opposite each other.
Here is an analysis of currencies' strength for the coming week using Weighted Averages, ONLY.
Objective: Find any 2 currencies that are moving opposite each other. For example, I found a few, like CADCHF and AUDCHF . Would you be able to find more?
CHF (Strongly )
On D1, CHF Weighted Average broke the channel median and now is trading below it. I am on CHF.
But to trade CHF on the side I want to see the triangular breaks first
NZD (Strongly )
I am on NZD too. See D1. It acts like CHF
I think NZD is ready to trade on the Short side on Monday as on Hourly TF it already did the hard work of breaking the most recent support and pulling back off it and now it has enough room going lower.
JPY ( )
I like YEN on the Short side but it seems on Thursday and Friday the move slightly exhausted on D1.
But see the beautiful clean channel on 1H TF. It just visited the lower band of the channel, made and formation and constantly touched the upper band of the and if on Monday it breaks the upper band of the YEN will remain in the coming week. What is confusing is that Stocks is showing a break to the topside which means YEN weakness! Let’s see…
CAD ( )
CAD has been moving slower than a snail in 2019. Trading in a very narrow range but still on D1.
Right now is resting below the resistance.
On hourly it reached the resistance too. I exited my EURCAD Short and USDCAD on Friday only because of the following chart. USDCAD is exhausted on the move too which adds up to this.
AUD ( )
Since mid-August, AUD has been trying to bounce and it really has a tough job to break all these resistance. Any move higher will be limited and breaking lower needs a strong motivator. Overall AUD has been for the last 3 months as it reached support in AUG.
EUR ( )
This pair has the least among all Currencies. That means if you are going to trade any EURO pair you should have less focus on this one. Let’s say if you trade EURGBP , studying EUR does not help you too much as EUR on average going higher or lower for 0.2% (based on my experience) where Sterling can rise or fall by 2% in one single day.
On D1 it is and made a few attempts to bounce off the median and it failed.
Watch this clear break lower on 1H that happened on Friday, mainly because of CAD and AUD rose higher.
USD ( )
The reason for being on USD is because it broke the median and now is heading back to this and a pullback expected. What the Median and see how nicely it acted as for the last a few months.
On hourly as can be seen still USD has some room to higher but then it faces layers of resistance.
Last is Sterling as trading any Sterling pair is like gambling ;)
On D1, it reached to the very near of resistance and pulled back, but the pullback was not that sharp. That means buyers are still interested in buying this market.
On the hourly, Sterling made a megaphone pattern and ever since it reached the resistance it made a formation. I like Sterling Long but technical suggests it is . The currency is heavily news related so I would just look at very short TFs for this currency to find the direction of the move.
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Have a great weekend friends,
It is ready to break the wedge formation. That means Long XXXCHF is most likely to be the winner...