Date: July 14, 2017
USDJPY dropping nicely, remain bearish for a further drop
Sell below 114.32. Stop loss at 115.09. Take profit at 111.77.
Reason for the trading strategy (technically):
Yesterday price has continued to drop but is starting to see its bearish momentum slowed down, we do see a lot more downside potential in this move though. Our goal is to remain bearish looking to sell on rallies below major resistance at 114.32 (Fibonacci extension, horizontal swing high resistance, bearish divergence) so that we can get into good positions to play the push down to at least 111.77 support (Fibonacci retracement, horizontal overlap support).
Stochastic (89,5,3) is seeing major resistance below 95% and has made a bearish triangle exit. We can see that it has good downside potential to play the drop further before reaching any significant support.
GBPUSD bouncing perfectly from our buying area, remain bullish whilst protecting our profits
Buy above 1.2898. Stop loss at 1.2804. Take profit at 1.3029.
Reason for the trading strategy (technically):
Price has bounced off our buying area at 1.2810 perfectly previously. We remain bullish looking to buy above 1.2898 support (Fibonacci retracement, horizontal overlap support) looking to play a further rise up to 1.3029 resistance (Fibonacci extension, horizontal swing high resistance). We protect our profits by shifting our stop loss to 1.2804.
Stochastic (34,5,3) is seeing strong support above 6.2% and also has good upside potential for us to play before it reaches any significant resistance.
AUDUSD right on major resistance, prepare to sell
Sell below 0.7750. Stop loss at 0.7774. Take profit at 0.7708.
Reason for the trading strategy (technically):
Price is fast approaching major resistance at 0.7750 (Fibonacci extension, major swing high resistance) and we expect a reaction off this level to see a drop to at least 0.7708 support (Fibonacci retracement, horizontal pullback support). A break of this level would open a much bigger bearish move.
Stochastic (34,5,3) is seeing major resistance below 95% and we expect it to drop correspondingly with price soon.
NZDUSD profit target reached, prepare to sell
Sell below 0.7345. Stop loss at 0.7372. Take profit at 0.7289.
Reason for the trading strategy (technically):
Price has risen and reached our profit target perfectly from yesterday. We prepare to sell below major resistance at 0.7345 (Fibonacci extension, bearish price action, horizontal swing high resistance) for a drop to at least 0.7289 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) is seeing major resistance below 95% where we expect a corresponding drop from along with price.
USDCHF now testing major resistance, prepare to sell
Sell below 0.9687. Stop loss at 0.9741. Take profit at 0.9602.
Reason for the trading strategy (technically):
Price shot up yesterday and is now testing major resistance. We prepare to sell below major resistance at 0.9687 (Fibonacci retracement, horizontal overlap resistance, Fibonacci extension) for a push down to at least 0.9602 support (Fibonacci extension, horizontal swing low support).
Stochastic (34,5,3) is seeing major resistance below 94% where we expect a further drop from.
Correlation analysis: EURUSD and USDCHF are negatively correlated, meaning they move in opposite directions. It’s good to see a bounce on EURUSD and a corresponding drop in USDCHF.
EURUSD profit target reached, prepare to buy for a bounce
Buy above 1.1381. Stop loss at 1.1353. Take profit at 1.1444.
Reason for the trading strategy (technically):
Price has dropped perfectly to our profit target from yesterday. We prepare to buy above major support at 1.1381 (Fibonacci retracement, horizontal swing low support, bullish price action) for a push up to at least 1.1444 resistance (Fibonacci retracement, horizontal overlap resistance).
Stochastic (34,5,3) is seeing intermediate support at 19% where we expect a bounce from.
Correlation analysis: EURUSD and USDCHF are negatively correlated, meaning they move in opposite directions. It’s good to see a bounce on EURUSD and a corresponding drop in USDCHF.