Date: July 17, 2017
USDJPY profit target almost reached, prepare to buy above major support
Buy above 111.90. Stop loss at 110.88. Take profit at 114.32.
Reason for the trading strategy (technically):
Last week price has continued its drop perfectly towards our profit target. We prepare to buy above major support at 111.90 (Fibonacci retracement, Fibonacci extension, Elliott wave theory, horizontal overlap support) for a push up to at least 114.32 resistance (Fibonacci extension, horizontal swing high resistance).
Stochastic (34,5,3) is approaching major support at 1.2% which corresponds with the bounce we’re expecting in price.
AUDJPY approaching major resistance, prepare to sell
Sell below 88.26. Stop loss at 88.68. Take profit at 87.27.
Reason for the trading strategy (technically):
Price is approaching major resistance at 88.26 (Fibonacci extension, Elliott wave theory) and we expect to see a reaction off this level for a drop to at least 87.27 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) has been testing out 98% resistance for quite some time and we expect a drop on it soon.
Correlation analysis: AUD weakness is expected today with AUDUSD similarly testing major resistance and expecting a drop.
AUDUSD testing major resistance, prepare to sell
Sell below 0.7833. Stop loss at 0.7862. Take profit at 0.7769.
Reason for the trading strategy (technically):
Price is testing major resistance at 0.7833 (2 years high, Fibonacci extension) and we expect a reaction off this level to at least 0.7769 support (Fibonacci retracement, Elliott wave theory). We would require price to break this level first before we can confirm any further drop.
Stochastic (34,5,3) is testing 96% resistance and we expect it to drop soon along with price.
NZDUSD expecting one last push up
Buy above 0.7326. Stop loss at 0.7296. Take profit at 0.7398.
Reason for the trading strategy (technically):
Price has formed a new Elliott structure leading us to believe that we should be seeing one last push up before a drop. The goal is to buy above 0.7326 support (Fibonacci retracement, horizontal overlap support) for a push up to at least 0.7398 resistance (Fibonacci extension, Elliott wave theory).
RSI (55) is seeing support above 50% where we expect it to hold price up as long as it remains above this level.
USDCHF dropped perfectly towards profit target, prepare to buy for a bounce
Buy above 0.9606. Stop loss at 0.9591. Take profit at 0.9569.
Reason for the trading strategy (technically):
Price dropped absolutely perfectly from our selling area last week and is fast approaching our profit target. We prepare to buy above major support at 0.9606 (Multiple Fibonacci extensions, horizontal swing low support) for a push up to at least 0.9659 resistance (Fibonacci retracement, horizontal overlap resistance).
Stochastic (34,5,3) is seeing major support above 6% where we expect a bounce soon to happen.
Correlation analysis: EURUSD and USDCHF are negatively correlated, meaning they move in opposite directions. It’s good to see a drop on EURUSD and a corresponding bounce in USDCHF.
EURUSD profit target reached perfectly, prepare to sell
Sell below 1.1485. Stop loss at 1.1511. Take profit at 1.1419.
Reason for the trading strategy (technically):
Price has shot up and reached our profit target perfectly. We prepare to sell below 1.1485 resistance (Fibonacci extension, horizontal swing high resistance) for a push down to at least 1.1419 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) is testing major resistance at 97% signalling that a reversal is fast approaching.
Correlation analysis: EURUSD and USDCHF are negatively correlated, meaning they move in opposite directions. It’s good to see a drop on EURUSD and a corresponding bounce in USDCHF.