The EURUSD 1.10150 area is worth watching. It is an S/R zone with recent sideways of price action. It is also in confluence with rising trendlines (blue and magenta) on the D1. A significant bearish setup in the area is likely to yield a feasible sell trade with the 1.09320 zone (magenta horizontal line) a possible first target.
I may be wrong. Trade safe.
Trap
Although I hold a bearish bias on the GBPUSD, I am not entering the market until there is a significant sell trading setup at an area of value I identified, the 78.6 Fib zone of the most recent downleg on the D1; the zone (1.29300/1.30360) is bound by magenta horizontal lines. Meanwhile, the price action still has some bullish momentum.
I may be wrong. Trade safe.
Trap
XAUUSD Weekly Technical Outlook
After entering the horizontal resistance zone around 1517.90 (red) in August 2019, the XAUUSD market went into a consolidation phase. On the monthly time frame, a bearish candlestick printed in November broke the low of the bullish candlestick printed in October. However, the bullish candlestick printed in August 2019 is still acting as a controlling candlestick as none of the subsequent candlesticks printed has significantly broken above its high and they have only managed to inch to about 78.6 Fib retracement towards its low. The November 2019 bearish candlestick print is an outside candlestick to the bullish candlestick printed in October and serves as a threat to the bullish drive. The 1406.03 area (forest green) is a significant horizontal support zone.
On the weekly time frame, the relatively big bearish candlestick printed five weeks ago has failed to have any bearish follow-through as the market has subsequently printed only indecision candlesticks resulting in a sideways operation at the significant 1460 horizontal support zone. However, an emerging rising trendline (blue) is still largely intact. A significant breakdown of the zone on a daily closing basis is likely to encourage bears to pursue a southward drive.
Price action is operating within a falling channel (black) on the daily time frame. Recent price action has retested a broken-down support around 1469, and last week Wednesday a bearish candlestick broke below the zone. But the miniature candlesticks printed on Thursday and Friday, perhaps owing to the illiquidity on those days as a result of the partial activity of the New York session, indicate that a bearish drive below the zone has not yet materialized. We should await how the market handles the zone in the early part of this week. Note that the rising trendline (blue) seen on the weekly time frame is still acting as support and presently in confluence with the zone. It breakdown will likely give impetus to a southward continuation.
I may be wrong. Trade safe and prosper.
Trap
NZDUSD Weekly Technical Outlook
The NZDUSD market operation is grinding southwards within a falling channel (blue) after a 50 Fib retracement of the major downleg from the high of July 2014 to the low of August 2015. On the monthly time frame, a double bottom pattern was formed when market operation retested the August 2015 low (0.61210) in October 2019. This led to a bullish pullback to the significant, multi-year horizontal resistance zone around 0.64900 (red); an area which market operation failed to breach in November. Should bulls attempt a breach of the zone northwards, there are a few horizontal barriers they will have to contend with. Therefore, I don’t see much bullish drive above the zone. Very much likely, there will be a zone flip for a bearish turnaround with an initial target of the horizontal support around 0.61210 (sandybrown) which may extend to the 0.60840 handle (forest green). Basically, the technicals on the monthly time frame favour a southward mode even though the mood, i.e. current momentum, is a bit – very much temporarily, on the side of bulls.
On the weekly time frame, the 0.64900 horizontal resistance is in confluence with the 38.2 Fib retracement of the immediate, significant downleg. It should be watched for a likely southward turnaround. At any rate, a bearish setup in the 38.2/50 Fib zone (0.69400/0.65320) will likely yield a feasible sell trade.
On the daily time frame, recent price action has carved a rising wedge (black) but it is struggling to break above it, having printed indecision candlesticks around the wedge resistance area in the last four days. This is an indication of a decline in bullish momentum.
I am bearish NZDUSD. I will look for a sell trading opportunity at an area of value based on the monthly and weekly technical outlook; much likely within the 0.64900/0.65320 horizontal resistance zone.
I may be wrong. Trade safe and prosper.
Trap
AUDUSD Weekly Technical Outlook
The southward disposition of the AUDUSD market gave way to a sideways operation four months ago. A horizontal channel for market operation, approximately spanned by the 0.66697/0.69100 zone (bound by purple horizontal lines), is apparent on the monthly time frame. In November, a bearish candlestick was printed in the zone; but it failed to breach the low of the bullish candlestick printed in October. Meanwhile, the 0.66690 significant horizontal support is still very much in tact and may be a target of any bearish drive in the next few days.
Market operation on the weekly time frame is disposed southwards within a falling channel (red). Four weeks ago, price action broke below the 0.69130 horizontal resistance area and technicals support a bearish continuation. However, there is a decline in bearish momentum as the candlesticks printed in the last two weeks have been largely miniature in size.
Technicals on the daily time frame still favour bears but there is a decline in momentum. The bearish candlesticks printed recently are miniature, indicating that bears are getting less influential. We may see a brief pullback or sideways of price action in the early part of this week before any bearish drive.
I may be wrong. Trade safe and prosper.
Trap
USDJPY Weekly Technical Outlook
As a swing trader, I look for potential market reaction zones. On the USDJPY monthly time frame, I can see the 109.930 area (red) as a significant horizontal resistance zone and the 106.510 area (forest green) as a significant horizontal support zone. Presently, market operation is at the 109.310 zone, which was rejected in October 2019 and where the November bullish print nested. Looking left, it is apparent that market operation is influenced by the significant downleg from the high of February 2016 to June 2016, which has seen a 78.6 Fib retracement in December 2016. A falling trendline (red) from the 78.6 Fib area is acting as resistance. Apparently, any bullish drive is likely to be short-lived.
On the weekly time frame, the market is operating in a triangle (red), which is apparently corrective of an impulsive down trend. Technically, we may have a brief move northwards, but a southward turnaround is imminent, particularly as price action is finding it difficult to breach the significant 109.930 horizontal resistance (red).
On the daily time frame, price action is respecting a rising trendline (blue) from recent lows. As long as the trendline holds, we may expect bulls to sustain a northward move but with limited momentum. However, a significant breakdown of the trendline on a daily closing basis is likely to facilitate a southward drive.
A mini trendline (magenta) from recent price action on the H4 time frame is in play as support and its breakdown with a relatively big bearish candlestick will give an early warning of a possible southward turnaround.
I may be wrong. Trade safe and prosper.
Trap
GBPUSD Weekly Technical Outlook
The 1.30160/1.31960 zone (bound by red horizontal lines) on the GBPUSD monthly time frame represents a significant horizontal resistance zone. While the area was breached southwards in May 2019, market operation retested its lower boundary (1.30160) in October, representing a 61.8 Fib retracement of the preceding downleg from March 2019. However, the November 2019 market operation failed a follow-through.
On the weekly time frame, market operation has broken out of the resistance trendline of a falling channel (black), and a rising trendline (blue) is still in play.
Although technicals on the weekly time frame favour bulls, presently market operation is still sideways around the significant 1.30160 horizontal resistance. As the market operation is close to a significant horizontal resistance zone, the 1.30160/1.31960 zone (bound by red horizontal lines), we may experience a slowdown in bullish momentum which may give way to a southward pullback. The 1.26100 area (forest green) is a significant horizontal support. Therefore, any pullback is likely to target the rising trendline (blue) or the 1.26100 horizontal support (forest green).
Recent price action on the daily time frame is within a symmetrical triangle and, technically, we should expect a breakout from either side of the triangle. Much of the candlestick prints last week indicate an intention of bulls to go further northwards. But as market operation is presently located close to a significant horizontal resistance zone (1.30160/1.31960, bound by red horizontal lines), a bullish drive is likely to be hindered.
Technicals on the H4 time frame indicate that bulls still have room and influence to take price action further northwards; they may retest the 1.301160 horizontal resistance. But beyond that level, they are likely to face some barriers, given the significance of the 1.30160/1.31960 zone as resistance on the monthly and weekly time frames. We should await how price action handles the zone in the early part of this week. Personally, I am looking for a bearish setup within the 1.30160/1.31960 zone, as that will likely offer me a profitable R:R.
I may be wrong. Trade safe and prosper.
Trap
EURUSD Weekly Technical Outlook
The EURUSD market has continued its southward disposition on the monthly time frame, operating within a falling channel (blue). The 1.11440 zone (red) has held as horizontal resistance. The area was breached southwards in July 2019 but was retested by a bullish print in October. The bearish print in November indicates a flip of the zone for a bearish continuation, with an initial target being the 1.08850 horizontal support (forest green).
On the weekly time frame, a rising trendline (black) traceable to November 2016 is in play as support and in confluence with the 1.09340 horizontal support. We should watch the 1.09340 horizontal support; it was the origin of a bullish rally in May 2017 and was only revisited by price action in September 2019. We may see a brief northward pullback or sideways of price action in the area in the early part of this week. Very much likely, a significant breakdown of the area on a daily closing basis will give impetus to a southward drive. Looking left, this may lead to filling of the gap created between the 1.07320 and 1.08680 (bound by forest green horizontal lines).
The technicals on the daily time frame favour bears but a pullback seems to be in the offing. We may see bulls take price action to the immediate horizontal resistance around 1.10880 before a southward turnaround.
The most recent candlestick prints on the H4 time frame favour bulls. Looking left, the technical pattern indicates a possible northward move, perhaps to retest the 1.10870 area. Thereafter, we may see a bearish turnaround. I am bearish EURUSD but will await a northward pullback to an area of value before looking for a feasible sell trading opportunity.
I may be wrong. Trade safe and prosper.
Trap
I am tracking the NZDUSD and will wait to see how price action handles the 0.65590/0.65970 zone. A significant bearish setup in the zone is likely to yield a successful sell trade. The area represents a significant horizontal resistance zone on the monthly time frame and a 50/61.8 Fib zone of the recent significant downleg on the weekly time frame.
Trade safe.
Trap
The EURUSD momentum is bullish. But as the longer term mode is southwards, any buy trade should be traded with caution and for a brief profit. A more feasible trade will be a sell trade after a northward push to an area of value.
I may be wrong. Trade safe.
Trap
I will not be providing a top-down technical analysis of the XAUUSD this week. The technical outlook provided last week is still valid in my humble opinion. The market is in a sideways mode but the bearish thrust five weeks ago was huge and it is awaiting a follow-through. A breakdown of the 1460 zone, where market operation is presently happening, is likely to provide a southward drive. This may expose the 1440 support zone.
I may be wrong. Trade safe.
Trap
NZDUSD Weekly Technical Outlook
The NZDUSD market is disposed northwards within a falling wedge (blue) on the weekly time frame. Presently, price action is located at the 61.8 Fib zone of the recent dominant downleg. The zone, 0.65685/0.66170, is also in confluence with the wedge resistance trendline; it is susceptible to a southward turnaround.
Recent price action on the H4 time frame is within a rising channel (black) but the bullish momentum seems to be weakening as the market enters a significant resistance zone around 0.65685/0.66170. We may have a southward pullback of price action in the early part of this week.
I may be wrong. Trade safe and prosper.
Trap
GBPCAD Weekly Technical Outlook
The GBPCAD market is still disposed northwards. However, on the weekly time frame, market operation is just about 110 pips below the 1.74940/1.77410 horizontal resistance zone (bound by red horizontal lines) but the technicals still favour a further northward move.
On the daily time frame, a rising trendline (blue) is still in play, and the technicals and the order flow favour a bullish continuation. However, we may see a pullback or sideways of price action when market operation enters the 1.74940/1.77410 horizontal resistance zone (bound by red horizontal lines).
On the H4 time frame, price action has moved far above the rising trendline (blue) seen on the daily time frame to respect a rising channel (magenta); indicating an increase in bullish momentum. However, the choppiness of price action in the channel indicates a slowing down of bullish momentum. We may see a pullback of price action before any further bullish drive.
I may be wrong. Trade safe and prosper.
Trap
EURUSD Weekly Technical Outlook
The EURUSD market is generally disposed southwards but recent weeks have seen a sideways of market operation. On the weekly time frame, the bearish engulfing candlestick printed five weeks ago has failed a follow-through as the momentum stalled for a ranging operation at the 1.10580 horizontal support zone. We should await how price action handles the zone in the early part of this week. Any breakdown of the zone is likely to give impetus to a southward drive, whereas a northward pullback may target the 1.11650 zone.
On the daily time frame, price action has broken out of a falling channel (red) and is presently operating within a falling wedge (blue). Last Friday, a bearish engulfing candlestick was printed at the wedge resistance trendline. We may see a bearish follow-through in the early part of this week. However, as presently price action is located at the 1.105480 horizontal support zone we may see a sideways of price action before a bearish continuation.
I may be wrong. Trade safe and prosper.
Trap
The GBPUSD intra-day momentum is still bullish. But a slowdown into a ranging mode around the 1.32700 horizontal resistance zone is imminent in my humble opinion.
Trade safe.
Trap
While the descending trendlines (blue and red) from the high of June 2019 may act as resistance to a bullish EURUSD price action, we should be interested more in a bearish setup around the 1.11115/1.11540 zone (bound by red horizontal lines). The area has potential for a more feasible sell trade.
Trade safe.
Trap
If you are tracking the EURJPY, you may be interested in a possible zone flip around the significant 121.000/122.150 horizontal resistance zone (bound by red horizontal lines). This may mean a validation of the falling trendline from the high of January 2018 (blue). I will wait for it.
I may be wrong. Trade safe.
Trap
I am watching price action on GBPUSD for possible sell trading opportunity at an area that may surprise the crowd. Nothing will surprise in a long trade at the moment, but a sell trading opportunity at the 1.32700 signnificant horizontal resistance zone is what I am looking for. Any bearish setup in the area on an H4 closing basis will pique my interest. A shocking result at the UK general election will give the trade the fuel.
I may be wrong. Trade safe.
Trap
NZDUSD Weekly Technical Outlook
Bulls have taken NZDUSD market operation to above the resistance trendline of a falling wedge (blue) and now located within a horizontal resistance zone (0.65760/0.66210), bound by red horizontal lines. The area is also close to the 61.8 Fib zone of the recent downleg from the high of July 2019. It should be watched for potential bearish reaction.
On the daily time frame, price action printed a long upper-tailed doji candlestick below the wedge resistance trendline (blue) seen on the weekly time frame and within the 0.65760/0.66210 horizontal resistance zone (bound by red horizontal lines). We may have to await price action in the zone in the early part of this week for directional clarity. Much likely, we are going to have the resumption of a southward turnaround.
On the H4 time frame, a bearish reaction has taken place below the 0.65760/0.66210 horizontal resistance zone (red) seen on both the weekly and daily time frames, taking price action back to inside of the falling wedge (blue). However, there is no break in structure as long as the 0.65210 horizontal support is still intact. We may have to wait for a significant break of the 0.65210 area, with a retest, on an at least an H4 closing basis, before we can have confidence in a southward drive.
I may be wrong. Trade safe and prosper.
Trap
GBPAUD Weekly Technical Outlook
The GBPAUD market is disposed northwards. On the weekly time frame, market operation is within a rising channel (black) and bulls are heading towards the channel resistance trendline. The bullish candlestick printed last week nestled at the channel resistance trendline but ended up with shadows at both ends. Should bulls breach the channel resistance trendline northwards, they will have to contend with the 1.96050 horizontal resistance area.
On the daily time frame, market operation has seen an increase in bullish momentum since price action rejected an outer rising trendline (green) traceable to July 2019 to respect an inner rising trendline (blue) from more recent higher lows. The candlestick printed last week Friday broke and closed above the rising channel (black) seen on the weekly time frame. However, its upper shadow is an indication of a weakness in bullish momentum. But, should there be a bullish follow through in the early part of this week, the 1.96050 area (red) is a potential horizontal resistance.
The H4 time frame shows a northward gap of price action above the inner trendline (blue) seen on the daily time frame owing to the UK General election. A bearish correction was being initiated immediately after the election but we have to await the early part of this week for clarity of price action.
I may be wrong. Trade safe and prosper.
Trap
