Date: October 10, 2017
USDJPY starting to break our wedge formation, prepare to sell
Sell below 112.65. Stop loss at 113.51. Take profit at 110.90.
Reason for the trading strategy (technically):
Price is still testing our wedge support and we can see that it is trying to break that key level of support. We look to sell once again on break of key support at 112.65 (overlap support, wedge support) for a drop towards 110.90 support (Fibonacci retracement, horizontal overlap support).
RSI (55) sees bearish divergence signalling that a strong reversal is impending. However, we see intermediate support at 50% so only a break of this level would trigger a bearish move.
EURJPY bouncing nicely off major support, time to buy
Buy above 132.01. Stop loss at 130.45. Take profit at 134.15.
Reason for the trading strategy (technically):
Price continues to test our buying area. We remain bullish above major support at 132.01 (Fibonacci retracement, horizontal overlap support, Fibonacci extension) and we expect to see a nice bounce above this level to push price up to at least 134.15 resistance (Fibonacci extension, horizontal swing high resistance).
Stochastic (34,3,1) is bouncing nicely off our 1% support as expected.
AUDJPY continues to test our major support, remain bullish
Buy above 87.81. Stop loss at 87.40. Take profit at 88.75.
Reason for the trading strategy (technically):
Price continues to test our major buying area. We remain bullish looking to buy above major support at 87.81 (Fibonacci retracement, horizontal overlap support, Fibonacci extension, bullish divergence) for a push up to at least 88.75 resistance (Fibonacci retracement, horizontal swing high resistance).
Stochastic (31,3,1) is seeing strong support above 2.5% where we expect a bounce from. We can also see bullish divergence vs price signalling that a bounce is impending.
USDCHF bouncing up nicely, remain bullish
Buy above 0.9771. Stop loss at 0.9737. Take profit at 0.9834.
Reason for the trading strategy (technically):
Price has bounced up nicely as expected. We remain bullish looking to buy above major support at 0.9771 (Fibonacci retracement, Fibonacci extension, horizontal overlap support) for a further push up to at least 0.9834 resistance (Fibonacci extension, horizontal swing high resistance).
Stochastic (34,3,1) is seeing strong support above 11% where we expect a further bounce from as it still has good upside potential.
GBPUSD bouncing perfectly, remain bullish
Buy above 1.3002. Stop loss at 1.2829. Take profit at 1.3269.
Reason for the trading strategy (technically):
Price has bounced up absolutely perfectly from our buying level as expected. We remain bullish above major support at 1.3002 (Fibonacci retracement, Fibonacci extension, horizontal pullback support) for a further rise above this level to push price back up to previous support-turned-resistance level at 1.3269 (Fibonacci retracement).
Stochastic (21,5,3) is seeing strong support at 3.4% and has made a bullish exit signalling a change in momentum. We can also see good upside potential.
EURUSD continues to test strong resistance, remain bearish
Sell below 1.1744. Stop loss at 1.1793. Take profit at 1.1653.
Reason for the trading strategy (technically):
Price continues to test our strong resistance and selling level as we wait for a reaction. We remain bearish today looking to sell below 1.11744 resistance (Fibonacci retracement, horizontal pullback resistance, bearish divergence) for a push down to at least 1.1653 support (Fibonacci extension).
Stochastic (21,5,3) is seeing major resistance below 95% and we expect a corresponding reaction from this level. We can also see bearish divergence vs price signalling that a drop is impending.