Date: July 18, 2017
USDJPY approaching major support, prepare to buy
Buy above 111.90. Stop loss at 110.88. Take profit at 114.32.
Reason for the trading strategy (technically):
We remain bullish preparing 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 dropping perfectly as expected, remain bullish for a further drop
Sell below 88.26. Stop loss at 88.68. Take profit at 87.27.
Reason for the trading strategy (technically):
Price has reached our selling area and reacted off it perfectly. We remain bearish looking to sell on strength below major resistance at 88.26 (Fibonacci extension, Elliott wave theory) for a continued drop to at least 87.27 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) has started dropping from our 98% resistance nicely.
Correlation analysis: AUD weakness is expected today with AUDUSD similarly testing major resistance and expecting a drop.
AUDUSD dropping perfectly as expected, remain bearish for a further drop
Sell below 0.7802. Stop loss at 0.7843. Take profit at 0.7741.
Reason for the trading strategy (technically):
Price has dropped absolutely perfectly from our selling area as expected and is fast approaching our profit target. We remain bearish looking to sell below 0.7802 resistance (Fibonacci retracement, horizontal pullback resistance) for a further drop to at least 0.7741 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) is dropping nicely from our 96% resistance as expected.
Correlation analysis: AUD weakness is expected today with AUDJPY similarly testing major resistance and expecting a drop.
NZDUSD approaching strong support, prepare to buy
Buy above 0.7244. Stop loss at 0.7213. Take profit at 0.7299.
Reason for the trading strategy (technically):
Price is approaching major support at 0.7244 (Fibonacci retracement, horizontal overlap support) and we expect a bounce above this level to at least 0.7299 resistance (Fibonacci retracement, horizontal pullback resistance).
Stochastic (21,5,3) is approaching strong support above 3% where we expect a bounce to occur
USDCHF bouncing perfectly as expected, remain bullish for a further rise
Buy above 0.9606. Stop loss at 0.9591. Take profit at 0.9569.
Reason for the trading strategy (technically):
Price has reached our profit target from Friday and has started to bounce off nicely from our buying area yesterday as expected. We remain bullish looking to buy on dips 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% which should hold our bullish move.
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 right on resistance, remain bearish
Sell below 1.1485. Stop loss at 1.1511. Take profit at 1.1419.
Reason for the trading strategy (technically):
We remain bearish looking 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.