Here’s my technical perspective on EURUSD.
The EURUSD market continues being ambivalent and non-directional. The daily time frame shows a market in consolidation and may be of interest to scalpers and intra-day traders.
The H4 time frame shows a northward directional operation of price action. Technically, this may be followed up in the early part of this week. But the 1.14900 area is a potential resistance zone, followed by the 1.15600 zone. I prefer to wait until the bullish mode peters out.
I may be wrong. Trade safe and prosper.
I have just completed my weekly technical analysis involving the screening of the pairs on my watch list to select a few pairs that meet my trading criteria and system. Largely the markets are either ambivalent or lacking in directional momentum. Therefore, I am waiting out the early part of this week for directional clarity. Two pairs I will be watching are XAUUSD and GBPZNZD.
I am short-term bearish XAUUSD as price action on the daily time frame appears to be due for a corrective southward retracement.
Generally, I am bearish GBPNZD but will wait for the market to show clarity of its intent after Monday or Tuesday. A sell trading setup around the 1.91000 area will pique my interest.
I may be wrong. Trade safe and prosper.
I am bearish EURJPY. Price action on the daily time frame is testing the horizontal resistance around 125.600/125.300 possibly for a role flip. A southward breach of the 125.300 area is what I will look out for.
I may be wrong. Trade safe and prosper.
I may be wrong, but I believe a swing trader should have more pairs or items to trade than an intraday trader or scalper. While an intraday trader or scalper can get in and out of a market a few times in the day, a swing trader needs to watch the markets for a long while before deciding which ones to enter and stay in such markets far longer than an intraday trader or scalper. He or she may have to wait far longer to get a feasible trading opportunity that meets his/her criteria or strategy. As a swing trader, I currently have 12 Forex pairs (including XAUUSD) on my watch list. This week, I will start watching 10 additional pairs over the next few weeks before deciding which ones (about 3-5) to add to my current watch list.
Trade safe and prosper.
Do you do a pre-market analysis? It is worthwhile for traders to do a pre-market analysis and develop a plan of action based on the analysis. For example, intraday traders may do a daily pre-market analysis. As a short-term swing trader, I do a weekly pre-market analysis. During the analysis, I scan the pairs on my watch list to see which pairs meet my criteria for possible trading during the week. I have just completed my weekly pre-market analysis and will look to trading the EURUSD southward during this week. The XAUUSD is another I will look to trade, but I am holding a bullish technical bias on it.
Trade safe and prosper.
We may expect the EURUSD to continue a bearish disposition this week.
On the weekly time frame, in January 2018, the market made a 61.8 Fib retracement of the downward drop from the high of April 2014 to the low of December 2016 and is trading below a descending trendline (red) traceable to May 2011. An ascending trendline (black) traceable to the low of December 2016 was breached southwards in November 2018 and retested for a role flip in January 2019. Presently, price action on the weekly time frame is located around a multi-year S/R area and is in a consolidation phase. A breakdown of the area is likely to result in a momentum for a southward continuation. Any northward retracement is likely to be corrective in nature.
I may be wrong. Trade safe and prosper.
Which criteria are you using for deciding or selecting the pairs to trade or keep on your watch list? For me, as a short-term swing trader, I believe in markets that trend very well and reliably respect technicals.
Trade safe and prosper.
Just sharing
One principle I try to adhere to is to keep things as simple as possible and master the markets. After my almost 10 years of trading - although not full time, I have come to the realization that simplicity comes with experience. In the process of gaining the experience, mastering the markets should be a high priority of any trader who wants to be successful on a consistently sustainable basis.
Trade safe and prosper.
