I hope you had a great trading week.
Some of the currencies did not move much last week. For example YEN (-0.22%), CHF (+0.3%), GBP(+0.24%) and EUR (+0.15). That means if you traded these currencies most likely you closed your trade too early as you believed your trades not moving in the direction predicted but the fact is that they did not move at all...
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...
Here is a trade based on correlations.
GOLD and NIKKEI are negatively correlated, Also Gold and USDJPY are negatively correlated too. (see correlation coefficient indicator in the chart) Therefore if you think NIKKEI may possibly be rising, then GOLD has more downside pressure from stocks.
In the last two posts I believed US stocks may rise, hence GOLD may fall....
Here is what I think for the coming week, Have a great trading week.
Last week, I mentioned there would be a great Shorting opportunity for this pair and finally it collapsed. For the coming week I do not see any support on any TF except on the Daily Chart. I would not go Short immediately at Open as we should see this support on Daily...
Here is what I think for most of the pairs for the coming week. Have a great trading week.
• AUDCAD on Monthly broke the support last month. On Daily nice pullback off the EMAs and resistance. I would go Short with and order pending at the low on 15min chart to Short
• AUDNZD is a good Long. But on 15 min it is bearish now however...
I thought it would be a good idea to share with you my plan for the coming week.
New Zealand dollar
This pair is very bearish both on Monthly TF. It made several attempts to go lower and each time failed BUT it is still below both trend lines and both EMAs therefore it is still bearish. On the Weekly TF also last week it came back below...
I have been developing an indicator which identify key supports and resistance using "Swing indicator" as the main sub-indicator.
Here is what I think for AUDNZD:
On hourly TimeFrame, this pair has made a wedge formation which is more likely to be broken to the downside. Watch that false breakout and if you look at Daily it is below EMA 14 and 21 and...