GBPUSD Weekly Technical Outlook
Recently, the bearish pressure on the GBPUSD market has diminished. On the monthly time frame, market operation saw an increased bearish pressure in February limiting a bullish candlestick to produce marked shadows at both ends. A bearish candlestick was printed in March, signposting the intent of bears to exert further pressure in the market. But the pressure was not sustained as the resulting candlestick printed in March was relatively small and lacked directional potency. Meanwhile, the interim candlestick print in April is ambivalent, indicating a market operation in a sideways mode. Technically, on the monthly time frame, the GBPUSD market is still operating in an area of historical consolidation – the 1.40420/1.36640 area (red).
GBPUSD market operation on the weekly time frame is presently sideways. The candlestick printed in the last three weeks have been mixed although bears have a slight edge, having printed two relatively bigger candlesticks as opposed to the bullish breaker candlestick printed two weeks ago. The recent technical pattern shows a consolidation area immediately above the present consolidation area, indicating lack of directional momentum in the market. Technically, it is advisable to await what the market does in the early part of this week before making directional commitment.
On the daily time frame, on Friday, price action surged southwards to the minor horizontal support around 1.36640, printing a hammer-like candlestick in the area. This was a change in bearish potency, a change which began on Thursday with a doji-like print after there had been two relatively big bearish candlesticks printed on Tuesday and Wednesday. Very much likely we may see a bullish pullback to an area of value, say the 1.38380/1.38820 area (magenta), before any southward turnaround.
I may be wrong. Trade safe and prosper.
Trap
EURUSD Weekly Technical Outlook
The EURUSD market is in a sideways mode. On the monthly time frame, the interim April candlestick, being bullish, is in opposition to the bearish operation that dominated in March. Meanwhile, the 1.170460 area (green) is holding as a horizontal support on the monthly time frame.
EURUSD market operation took on a bullish tone on the weekly time frame with the printing of a relatively big bullish candlestick last week after the printing of a hammer-like candlestick at the 1.170460 horizontal support area (green) two weeks ago. The technical patterns of recent candlestick prints show some liquidity northward of the present area of market operation, and we may see the market make a bullish move to grab some liquidity in the area in the early part of this week.
Price action on the daily time frame is in a falling wedge (magenta). Presently, price action is at the wedge resistance trendline where a long-tailed bearish candlestick was printed on Friday. Technically, recent order flow context supports bulls. A bullish follow-up in the early part of this week may be an attempt by the market to grab some liquidity around the 1.19850/1.20230 horizontal resistance area (purple).
I may be wrong. Trade safe and prosper.
Trap
XAUUSD technicals support bullish continuation in the early part of next week. I will give details on this asset and three Forex pairs before the market opens.
I may be wrong. Trade safe.
Trap
USDCAD Weekly Technical Outlook
Although the USDCAD market is still bearish, the directional momentum is in decline. On the monthly time frame, market operation is experiencing a decline in bearish momentum as the relatively strong bearish drive that was re-established in November 2020 and sustained in December 2020 gave way to sideway market operation in January and February 2021. Although, in March 2021, market operation re-established a bearish mode, the lower shadow on the bearish print in March indicates that bulls are still influential in the market. The interim market operation in April is rather ambivalent but technicals still give a slight edge to bears. The 1.22416/1.20600 area (green) is the next significant horizontal support on the monthly time frame.
Market operation on the weekly time frame is in a falling wedge (red). The wedge is increasingly getting narrow, indicating that it is susceptible to being breached; particularly as market operation approaches the next significant area of value below the wedge. One such area of value is the 1.22410 area. Meanwhile, market operation has been sideways at the wedge resistance area, with the last two candlesticks favouring bears. Last week’s candlestick print was a bearish pin bar, and this portends the possibility of a bearish continuation.
Recent price action on the daily timeframe, with largely top-wick candlesticks, shows an increase in bearish rejection of the resistance trendline of the falling wedge (red) seen on the weekly time frame. Thus, technically, we may see a bearish continuation in the early part of this week.
I may be wrong. Trade safe and prosper.
Trap
XAUUSD Weekly Technical Outlook
The XAUUSD market presently has a bullish tone. On the monthly time frame, market operation in April has moved above the high of the doji-like candlestick printed in March and favours bulls. Presently, it is at the lower boundary of the 1897.23/1779.07 consolidation range (purple) created between November 2020 and February 2021. Technically, the 1779.07 area, a broken-down horizontal support area, is d susceptible to a role flip.
XAUUSD market operation on the weekly time frame is northward. Last week, a bullish continuation candlestick broke above a minor area of consolidation that had been in place for four weeks. This was after some weeks of bearish candlestick prints. Technically, the present bullish mode may be a northward pullback for liquidity grab, and we can expect further bullish operation.
The daily time frame shows a multi-session ‘W’ pattern, which has the potential to continue its outer upper leg northward. There was sideways of price action between Monday and Wednesday last week before bullish continuation candlesticks were printed on Thursday and Friday. Should bulls sustain their influence in the market, we may see further northward move in the early part of this week.
I may be wrong. Trade safe and prosper.
Trap
EURUSD Weekly Technical Outlook
The bearish mode on the EURUSD market has given way to a bullish tone. On the monthly time frame, although there was a relatively strong bearish operation in March, the interim April market operation is bullish. Technically, we are in a sideways market. The 1.17240/1.20580 zone (purple) is the prevailing market operating range.
Market operation on the weekly time frame is in a rising channel (red). Presently, a bullish operating mode is prevailing in the channel; with the printing of two bullish continuation candlesticks in the last two weeks after a bearish drive that ‘wicked’ at the channel support trendline. The ‘wicky’ prints at and above the present location of market operation may incentivize a northward liquidity grab.
On the daily time frame, price action is respecting a rising trendline (blue) from recent lows. Presently, price action is sideways as the market tackles a minor horizontal resistance around the 1.20000 area (magenta). A bullish breakout from the area may see further northward push. But a bullish misstep may see bears push for a southward mode, which may see a retest of the minor horizontal support around 1.18700 (light green).
I may be wrong. Trade safe and prosper.
Trap
GBPUSD Weekly Technical Outlook
GBPUSD market operation is presently sideways. On the monthly time frame, the bullish candlestick printed in February was mitigated by a bearish print in March. Presently, the April market operation is rather ambivalent.
On the weekly time frame, two weeks ago, GBPUSD market operation broke below a rising trendline (red) traceable to March 2020. However, last week saw the printing of a bullish candlestick which surged to retest the rising trendline but did not close above it. We may see further bullish move in the early part of this week, perhaps for liquidity grab around the 1.39270/1.40070 area (purple).
On the daily time frame, recent price action made a bullish rejection of the 1.36860 horizontal support (light green). This was followed on Friday by the printing of a contextually, relatively strong bullish continuation candlestick. Technically, we can expect bulls to keep the momentum going in the early part of this week. This may see the completion of a ‘W’ pattern around the 1.39270/1.40070 area (purple).
I may be wrong. Trade safe and prosper.
Trap
I have just completed my weekly pre-market screening of the pairs on my watch list. Technically, I expect the bearish retracement on the USDJPY to continue. I will give technical details on the pair and three others before market opens for the week.
Trade safe and prosper.
Trap
USDJPY Weekly Technical Outlook
The 100.80/116.80 zone (purple) represents a major horizontal channel for USDJPY market operation on the monthly time frame. The last three months have seen a bullish market mode within the zone, but the April interim market operation has been largely influenced by bears as a technical retracement of the bullish impulsive move. Presently, market operation is at a horizontal support around the 107.90 area within the zone, but we may see further southward retracement move.
Market operation on the weekly time frame has been bullish for quite a while before it got to a significant horizontal resistance area four weeks ago where it saw a bearish rejection. It is presently in a bearish mode after the printing of relatively significant bearish continuation candlesticks in the last three weeks. We may see further southward move this week but much likely a retracement of the predominantly bullish impulse.
Price action on the daily time frame is presently on a southward mode even though the technical impulse is primarily bullish. We may see further southward move to an area of value. Without precluding an initial corrective price action (e.g., a sideways or brief upward move), such an area of value is the 106.70 horizontal support area (light green). Should that area be breached southwards by price action, the 105.40/104.90 zone (green) may be the next target of bears before a northward turnaround.
I may be wrong. Trade safe and prosper.
Trap
USDCAD Weekly Technical Outlook
The USDCAD market continues its bearish tone. On the monthly time frame, market operation resumed a southward continuation after the sideways that occurred in January and February 2021. The 1.21660/1.19830 area (green) is a significant horizontal support on the monthly time frame.
On the weekly time frame, the last three weeks have seen bearish continuation prints after a bullish correction that started six weeks ago. Presently, market operation is at a horizontal support around 1.24750, which is around the neck of the bullish pinbar printed six weeks ago. Technically, we may see the market push southward for liquidity grab below the bullish pinbar printed six weeks ago.
Price action on the daily time frame is in a falling channel (red). Recent price action has been grinding southward and hugging the channel resistance trendline. Although Tuesday saw a bullish breakout of price action from the channel resistance trendline, a relatively big bearish candlestick printed on Wednesday restored the southward mode within the channel. We may see a bearish continuation in the early part of this week.
I may be wrong. Trade safe and prosper.
Trap
EURUSD Weekly Technical Outlook
The EURUSD market is primarily sideways although, presently, the technical mode is bullish. On the monthly time frame, the bearish print in March is being mitigated by the interim bullish market operation in April.
EURUSD market operation on the weekly time frame is bullish. The recent order flow has seen bullish continuation prints in the past three weeks. Even though the market operation is at a horizontal resistance around the 1.21000 area, the ‘wicky’ prints above the area may attract bullish interest.
Price action on the daily time frame has made a bullish breakout from a falling channel (red) and we may see further northward move in the early part of this week. Technically, such bullish price action may target the 1.21750/1.22200 zone (magenta).
I may be wrong. Trade safe and prosper.
Trap
GBPUSD Weekly Technical Outlook
The GBPUSD market is presently sideways. On the monthly time frame, market operation is consolidating within the 1.37000/1.40370 zone (purple). This is an area that has not been breached northward since February 2018. Nevertheless, the interim market operation in April has a bullish mode and, technically, we cannot rule out further northward move as there is still room for bullish operation beyond the current location of market operation.
The technical market structure on the weekly time frame is bullish. A bullish candlestick printed last week has taken market operation above an area of consolidation within the 1.3700/1.40370 horizontal channel (purple) seen on the monthly time frame. Last week’s bullish candlestick had a long upper wick and, technically, we can expect a bullish retest of its top.
Price action on the daily time frame has made a bearish retest of the neckline of a ‘W’ pattern which was completed on April 19. The bullish print of Friday is likely a resumption of the bullish market mode, and we may see further northward move in the early part of this week. Besides, although a rising trendline (red) traceable to September 2020 was recently broken down by price action, a bullish technical structure is supported by recent order flow context. Thus, technically, price action may attempt a retest of the broken down rising trendline (red) before we see any bearish turnaround.
I may be wrong. Trade safe and prosper.
Trap
I have just concluded my pre-market weekly analysis of pairs I hope to track this week. I expect USDJPY market operation to maintain a bullish tone although there was an attempt by bears to breach the technical bullish market structure. I will give details on this and three other pairs before the markets open.
Trap
USDJPY Weekly Technical Outlook
The USDJPY market is technically bullish but it is witnessing a decline in bullish momentum as bears increased their influence on market operation. On the monthly time frame, the market is operating within a broad horizontal channel in the 101.21/117.12 zone (purple), but there has been a bullish tone since January 2021. However, the bullish continuation drive of market operation since January 2021 was challenged in April by bears, resulting in the printing of a hanging-man like bearish candlestick for the month. Technically, although bulls are still favoured by the market structure, bears would look for further influence on market operation in May.
On the weekly time frame, market operation has witnessed a bullish impulsive trend since late January 2021. A bearish retracement started four weeks ago but it was shallow, and last week, a relatively big bullish candlestick was printed to restore the bullish tone. Technically, we could see further bullish move this week, but we should not discount efforts of bears to exert some pressure on market operation.
On the daily time frame, price action is respecting a rising trendline (red) traceable to January 2021. Price action tried to breach the technical bullish market structure by a bearish break of the 108.30 area (magenta). But there was limited follow-up as four feeble, indecision bearish candlesticks were produced after the attempted bearish breach before a strong bullish impulsive move on April 26 and 27 aligned price action with the rising trendline (red). We may see further bullish continuation this week.
I may be wrong. Trade safe and prosper.
Trap
USDCAD Weekly Technical Outlook
The USDCAD market is maintaining a bearish technical outlook. On the monthly time frame, the last two months have seen market operation produced bearish continuation candlesticks, breaking down the area of consolidation that was in place between January and February. Should bears sustain their drive, we may see them expose the horizontal support around 1.20530 (green).
On the weekly time frame, USDCAD market operation maintains a bearish mode within a fallen channel (red). There was a bullish retracement towards the channel resistance trendline a few weeks back, but the bearish pinbar that printed at the channel resistance trendline two weeks ago led to a relatively strong bearish continuation last week. Presently, market operation is at a horizontal support around 1.22900. This area may see some sideways of market operation or a brief northward pullback, but bears are favoured to sustain a southward continuation.
On the daily time frame, although technicals favour a bearish continuation, the relatively small bullish candlestick printed on Friday indicates that bulls are exerting pressure in the market. We may see some sideways or northward pullback of price action in the early part of this week. But technically, bears are favoured to sustain a southward mode. I am more bearish USDCAD than bullish.
I may be wrong. Trade safe and prosper.
Trap
GBPUSD Weekly Technical Outlook
The GBPUSD market is presently ambivalent. On the monthly time frame, three of the last four months have printed indecision and mixed candlesticks, with the 1.36340/1.40330 zone (purple) acting as the prevailing channel for market operation. The zone is within a larger zone that has served as a multi-year horizontal resistance zone since January 2018.
On the weekly time frame, market operation has broken below the support trendline of a rising channel (red). In the last two weeks, top-wicked candlesticks of opposing nature and almost equivalent size have printed below the channel support trendline. This technically indicates market ambivalence. While the ‘wicky’ tops may incentivize bulls, the lower wicks of three of the candlesticks printed in the previous four weeks form an equivalent bottom (green) and may attract bearish interest.
On the daily time frame, although the market structure supporting the rising channel (red) seen on the weekly time frame is still intact, presently, the technical mode is bearish. In terms of the order flow context, the recent bottom-wicked candlesticks printed at the channel support trendline may incentivize liquidity grab by bears before a northward turnaround. Technically, in the short term, I am more bearish GBPUSD than bullish.
I may be wrong. Trade safe and prosper.
Trap
EURUSD Weekly Technical Outlook
EURUSD market operation is technically sideways. On the monthly time frame, the 1.17050/1.21275 zone (purple) is the prevailing horizontal channel for market operation. The bearish candlestick printed in March was opposed by a bullish candlestick printed in April. However, we should be mindful of the upper shadow on the April bullish print. Technically, it leaves room for competing effort at market influence by both bulls and bears, with bulls having a slight advantage.
EURUSD market operation on the weekly time frame is within a rising channel (red). The most recent upward swing to the channel resistance trendline saw an 88.6 Fib retracement five weeks ago and nestled at the channel support trendline. Since then, bulls have restored the positive market operation until last week when bears effected a brief southward correction. The upper shadow on last week’s bearish candlestick may incentivize bulls for a liquidity grab this week.
Although there has been an increased bearish pressure on the EURUSD price action on the daily time frame, the larger technical structure is still bullish. It would take a significant bearish breakdown of the 1.16270 area (green) before we could have confidence in a southward breach of the bullish technical structure. However, this does not mean that we should discount any bearish corrective moves, and the relatively big bearish candlestick printed on Friday may be one of the features to expect. Presently, price action is at a minor horizontal support and in confluence with a rising trendline (blue) traceable to April 2, a situation which favours a potential flip of price action northwards. But we may see a bearish surge for liquidity grab at the 1.19610/1.19260 major horizontal support zone (sandybrown). Nevertheless, as technicals give an edge to bulls, any such bearish move is likely to be corrective in nature.
I may be wrong. Trade safe and prosper.
Trap
The EURJPY market seems poised for a bullish continuation in the early part of next week. I will post details of my technical perspective on this and four other pairs before the market opens for the week.
Stay safe.
Trap
EURJPY Weekly Technical Outlook
The EURJPY market is technically bullish. On the monthly time frame, the market turned bullish in May 2020 and saw a bearish correction between September and October before resuming a bullish mode in November. Since then, market operation has printed bullish continuation candlesticks. The candlestick printed in April surged to the 132.24 multi-year horizontal resistance area (red) before retracing. Meanwhile, the interim market operation in May is at the 132.24 area as bulls made another attempt to maintain a presence in the area. We may see further bullish move to expose the technical extension around 134.16 (purple).
On the weekly time frame, market operation has moved northward of an outer rising trendline (red) traceable to April 2020 to respect an inner rising trendline (blue) based on recent lows. This indicates an increase in bullish momentum. Technically, if the outer rising trendline (red) is still in play, the market structure is bullish. Meanwhile, the recent candlestick prints have mainly been in favour of bulls and we may see further bullish operation this week. The order flow context shows there is some liquidity above the present location of price action.
Technicals on the daily time frame show a progressive northward break of levels. This indicates that price action is impulsively bullish. Although last week Wednesday saw a 50 Fib retracement of the most recent bullish swing, the bullish tone was restored on Thursday, and, on Friday, a relatively bigger bullish continuation candlestick was printed. Technically, we can expect bulls to maintain their influence on price action in the early part of this week.
I may be wrong. Trade safe and prosper.
Trap
AUDUSD Weekly Technical Outlook
The AUDUSD market is technically bullish. On the monthly time frame, after a strong bullish move in December 2020, AUDUSD market operation went into a sideways mode in January and remained so for quite a long while till April. Presently, the interim market operation in May has moved above the area of consolidation and is toned bullish. Technically the 0.79800/0.81350 area (red) is a multi-year horizontal resistance and may be of interest to buyers seeking liquidity in the area. The 0.75690 area (green) is a horizontal support and may be of interest to bears should bulls fail to maintain their influence in the market.
On the weekly time frame, market operation printed a relatively big bullish continuation candlestick last week after a two-week period of consolidation. Recent technical pattern suggests that we may see either a sideways or bullish market operation this week. The order flow context suggests that we may see a bullish move for liquidity interest, at least around 0.79800, before any southward correction.
On the daily time frame, recent price action is in a rising channel (blue). Price action is in a bullish mode within the channel and heading towards the channel resistance trendline. Presently, price action is at the 0.78390 minor horizontal resistance area (magenta). The order flow context and technicals support further bullish move at least in the early part of this week.
I may be wrong. Trade safe and prosper.
Trap
