Market Outlook and Analysis (Aug2019 Week1)
Technical Analysis: AUDUSD
AUDUSD D1 Chart – The tale of 2 Sharks
The charts showing us that there are both a Bullish and a Bearish Shark forming on the Daily chart. The initial expectation was for this Bearish Shark to be competed around the 0.7160 levels. Instead it hit a resistance Trend Line and rolled over very quickly.
Now we could potentially see price testing the 0.6800 level and then traders will naturally start to be interested to go long.
AUDUSD H4 Chart – At a minor temporary Support Zone
The price movement down is strong and traders should be expecting a continuation of the move down next week. However, there could be a temporary support that the pair will face at the market open. I would be patient and looking at the completion of the Daily Shark at the 0.6800 levels
Technical Analysis: GBPJPY
GBPJPY D1 Chart – Horizontal support levels gives way
The pair has been on a downtrend, supported at the 135.30/80 levels for close to a month and in the last week, the horizontal support gave way. However, it formed a reversal pattern (falling wedge) and showed some strength. If the pair can stabalise next week, there could be a huge potential of a reversal up from this point onwards.
GBPJPY H1 Chart – Bullish Shark Pattern
There is a potential Bullish Shark completion at 134.05. A reversal at that point would also indicate that the pair is forming a huge Double Bottom reversal on the H4 chart. Hence, I would trade accordingly as the price movement plays out this coming trading week.
Technical Analysis: EURGBP
EURGBP D1 Chart: Potential retest of the Bearish Bat Pattern PRZ
The Bearish Bat Pattern completed about a week and a half ago after a very strong 500pip move up. Now the pair could come back up to the PRZ for a Type II entry. Again, I will be watching closely on the price action at the PRZ.
Similar to a big bounce on the GBPJPY, I would be expecting a big drop in EURGBP. Indicating a possible major strengthening in the GBP.
EURGBP H1 Chart: Potential Shark completion on the smaller time frame
The H1 charts showing us a Shark Pattern completion coupled with a resistance zone around the 0.8990/0.9000 level. If this bearishness is to persist, we might not see it test the highs.
Technical Analysis: CADCHF
CADCHF D1 Chart: (Trade Review) – Shark Pattern TP1 achieved (+119pips)
The pair completed the Bearish Shark Pattern. Fell and hit TP1 for a +119pips profit. Congratulations to those who took the trade.
Now we can wait for the re-test of the PRZ for a Type II entry to short this pair again.
CADCHF H4 Chart: Looking to short at the H4 Shark
Again, the chart shows us pattern after patterns. This time a potential short at the completion of the H4 Bearish Shark Pattern. Will be monitoring this potential trade this coming trading week.