GBPUSD Weekly Technical Outlook
The GBPUSD market is under a bearish pressure following the northward rally on the UK GE. On the monthly time frame, market operation printed a bullish candlestick with a significant upper shadow in December 2019, indicating bearish resistance to the bullish drive.
The topping candlesticks printed on the weekly time frame four and three weeks ago showed a bearish design to contain the northward rally seen in the earlier sessions. Last week, price action printed a doji-like candlestick with a long upper shadow, a further indication that bears are exercising more pressure to influence the market, particularly given the fact that a bullish candlestick was printed two weeks ago. Presently, price action is located at the 1.30810 horizontal support zone and we can expect either a sideways or a brief pullback of price action before bears continue their pressure.
On the daily time frame, the evening star formation in mid-December 2019, had a follow-through for a southward drive to the 1.29140 area on December 23, 2019. Thereafter, bulls attempted a retracement to the 61.8/78.6 Fib zone before a southward turnaround. Since then, price action has disposed southward but the market is still in a bullish environment. Although it will take a significant break below the 1.29140 area for a bearish environment to kick in, technically we can expect bears to maintain the current pressure.
I may be wrong. Trade safe and prosper.
Trap
EURUSD Weekly Technical Outlook
The EURUSD market is consolidating along a falling channel (blue) on the monthly time frame. In December 2019, market operation printed a bullish candlestick that broke above the 1.11600 area which had hindered bullish momentum since August 2019.
The weekly time frame shows the market operating within an inner falling channel (red). Two weeks ago, price action printed a bullish candlestick that broke above the channel resistance trendline. But an indecision candlestick was printed last week, indicating a slowdown of bullish momentum.
On the daily time frame, price action printed bullish candlesticks on Tuesday and Wednesday last week that took market operation above the resistance trendline of the falling channel (red) seen on the weekly time frame. But on Thursday and Friday, bears resisted the move with the printing of bearish candlesticks taking price action back to within the falling channel (red). However, the bearish candlestick printed on Friday retraced northwards to nestle on the channel resistance trendline, resulting in being a long lower-tailed candlestick; indicating that bulls are still influential in the market. We should await how price action handles the area in the early part of this week.
I may be wrong. Trade safe and prosper.
Trap
EURNZD Weekly Technical Outlook
EURNZD is slightly disposed southwards. On the weekly time frame, bearish candlesticks have dominated the last nine weeks; but the momentum is on a decline. Last week, bulls made a feeble attempt to initiate a northward move to follow through on the bullish print of two weeks ago. However, the attempt was futile, resulting in a doji-like print. This indicates a market in equilibrium and we should await what it does this week.
A falling trendline (red) is still in play as resistance on the daily time frame. Recent price action made a bullish move towards it but the move turned into consolidation in the past three days. Any further bullish move is likely to be short lived technically because of a barrier around the 1.68230 horizontal resistance area; which is in confluence with the 61.8 Fib retracement of the most recent downward swing from the 1.69810 area.
A topping formation can be seen at the 1.68190 minor horizontal resistance on the H4 time frame as recent price action operates within an expanding wedge (blue). A southward breakdown of the wedge may expose the 1.66210 inception area (purple).
I may be wrong. Trade safe and prosper.
Trap
GBPCAD Weekly Technical Outlook
The shooting star or pinbar printed in December 2019 on the GBPCAD monthly time frame around the 1.70370 area, where bulls had struggled to breach in the recent past, potentially opens the door for a bearish influence in the market. On the weekly time frame, two weeks ago, bears broke down a rising trendline (red) which market operation had respected for quite a while. Last week, bulls attempted a retest of the trendline but the result was a bullish candlestick print with shadows on both ends. Presently, market is operating at the 1.70370 area, which is a significant S/R area.
The daily time frame shows that price action has not significantly broken down the rising trendline (red). Therefore, we should await how the market handles the 1.70370 area and the rising trendline in the early part of this week.
I may be wrong. Trade safe and prosper.
Trap
USDCAD Weekly Technical Outlook
The USDCAD market is in a ranging mode. On the weekly time frame, market operation broke down a rising trendline (red) traceable to September 2017 and returned to within the upper part of the 1.33200/1.27900 channel (purple) from which it broke out in March 2019. Market operation is presently around the 1.30500 horizontal support area within the channel and from which a bullish candlestick was printed last week after six weeks of bearish prints beginning from the 1.33200 upper channel boundary. But the bullish print of last week failed to breach the high of the bearish print a week earlier and both candlesticks are ‘wicky’, indicating that bulls and bears are still locked in a struggle, and we may see a northward pullback before any further southward drive.
Bulls are taking the market northwards on the daily time frame. But given that the technicals still favour bears, we may see a southward turnaround soon.
Price action on the H4 time frame is disposed northwards, respecting a minor rising trendline (blue) from recent lows. A breakdown of the trendline is likely to result in a southward turnaround.
I may be wrong. Trade safe and prosper.
Trap
EURUSD Weekly Technical Outlook
The EURUSD market is disposed southwards within a wide-range falling channel (blue) on the weekly time frame. Recent market operation has carved out a narrower-range falling channel (red) and presently has formed an evening star just above the channel resistance trendline. This is potentially a bearish signal.
On the daily time frame, towards the end of December 2019, price action broke above the narrower-range falling channel (red) seen on the weekly time frame but bears pulled it back. Last week Friday, a bullish candlestick with shadows on both ends closed in the 1.11195 area; an area which has witnessed a see-saw of price action recently. A bearish rejection of the area may target the 1.09920 horizontal support area, while any bullish drive from it may retest the 1.11660 horizontal resistance where a topping formation could be seen.
The market is operating within a falling channel (blue) on the H4 time frame. Presently, the momentum is bullish and we may see further northward move of price action before a southward turnaround.
I may be wrong. Trade safe and prosper.
Trap
GBPUSD Weekly Technical Outlook
The relatively big bearish candlestick printed by the GBPUSD market on the weekly time frame four weeks ago is still influential as a master candlestick or a multiple inside-bar pattern. The market is presently operating at the 1.30585 area, which is under a bearish pressure. However, a southward drive will have to contend with a rising trendline (red) traceable to August 2019.
On the daily time frame, price action has rejected the 61.8 Fib retracement of the downward swing from the high of December 13, 2019 to the low of December 23, 2019. A step-wise rejection of the 50 and 38.2 Fib areas has also taken place. Presently, the market is operating at the 23.6 Fib area where a relatively miniature bearish candlestick was printed last Friday. This is an indication that bears are not totally in control of market operation. We may have a sideways, or a brief pullback, of price action before a southward turnaround.
I may be wrong. Trade safe and prosper.
Trap
EURNZD Weekly Technical Outlook
Although the EURNZD is disposed southwards on the weekly time frame, it is presently ambivalent direction-wise. Market operation has retraced northward since three weeks ago but the momentum has waned, with price action printing indecision candlesticks in the past two weeks.
An evening star pattern has formed on the daily time frame, indicating a potential bearish mode. Besides, a flag formation (blue) can be seen on the daily time frame. Its breakdown on a daily closing basis will likely incentivize bears to make further southward move. The 1.64250 handle may be exposed if a bearish drive is consummated.
I may be wrong. Trade safe and prosper.
Trap
GBPUSD Weekly Technical Outlook
The bullish drive in the GBPUSD market has waned. On the weekly time frame, a bearish engulfing candlestick was printed five weeks ago. However, it has no bearish follow-up and, presently, market operation is sideways at the 1.30110 S/R zone.
On the daily time frame, price action is within a symmetrical triangle (blue). The technicals are still ambivalent but a significant breakdown of the triangle is likely to give impetus to a bearish drive with the 1.27780 inception area a potential target. But a northward move of price action may be frustrated at the 1.32150 horizontal resistance area (red).
Recent price action on the H4 time frame is within a falling channel (magenta). It is disposed southwards from the channel resistance trendline and now located at the 1.30110 horizontal support area. This is also the location of the support trendline of the triangle seen on the daily time frame. We should note that the support trendline has seen several onslaughts of bearish pressure and its breakdown is imminent.
I may be wrong. Trade safe and prosper.
Trap
EURUSD Weekly Technical Outlook
The EURUSD market is ambivalent at the moment. On the weekly time frame, the general market outlook is bearish but presently price action is disposed northwards having broken above a falling trendline (purple) traceable to August 2018. It is now respecting a minor rising trendline (blue). Apparently, price action is in retracement and there has been a limited bearish momentum. Also, there has been no incentive for a bullish drive either. We should note that price action has failed to break below the bullish candlestick printed four weeks ago in spite of three weeks of bearish effort; the three bearish candlesticks printed in the past three weeks have been relatively miniature in nature. Nevertheless, a bearish breakdown of the minor rising trendline (blue) will likely lead to a southward continuation.
The topping formations on the daily time frame are indicative of bearish pressure and a decline in bullish influence. I expect further bearish move in the market. A significant breakdown of the rising trendline (blue) on a daily closing basis should be watched; that technically will indicate a bearish intent for a southward continuation.
Technicals on the H4 time frame favour bears. A falling trendline (magenta) is still in play and recent order flow context is favorably bearish.
I may be wrong. Trade safe and prosper.
Trap
XAUUSD Weekly Technical Outlook
XAUUSD market operation is now at the 1610/1616 multi-year horizontal resistance area that was last visited in April 2013. On the weekly time frame, market operation has moved somehow southward from the zone and turned sideways in the past three weeks. However, last week, bulls attempted a further northward push into the zone but the candlestick printed was relatively small. Technically, the northward disposition is still intact and a rising trendline (purple) is still in play.
Technicals on the daily time frame are still in support of bulls. But, the small size of the bullish candlesticks recently printed indicate a decline in momentum.
On the H4 time frame, recently bears are becoming more influential in the market. Significant bearish candlesticks had been printed that drove down market operation from the 1593.30 area to the 1538.50 area from January 8 to January 14. Since then, there has been little bullish push. In the last two sessions on Friday, bears made a southward push of price action from the 50 Fib retracement of the most recent downward swing; and presently located at the 38.2 Fib retracement area. We should await what happens in the early part of this week as a mini rising wedge (magenta) has been formed and needs to be breached either way by price action for directional clarity.
I may be wrong. Trade safe and prosper.
Trap
EURJPY Weekly Technical Outlook
The EURJPY market is disposed southwards. On the weekly time frame, market operation is within a falling channel (purple). Presently, it is at the channel resistance trendline with a southward mode. The technical pattern, e.g. with a bearish engulfing candlestick formed last week at the 122.230/120.455 area, favours a bearish continuation.
On the daily time frame, recently, price action was in a rising wedge (blue) within the falling channel (purple) seen on the weekly time frame. Last week Friday, it broke below the wedge with the printing of a bearish continuation candlestick and presently located at the 120.455 area. The 119.180 area is technically an initial target of further bearish move, thereafter the 117.870 area may be exposed.
Technicals on the H4 time frame favour bears but we may have a reversion of price action to the mean, by way of a brief northward retracement, before a southward continuation.
I may be wrong. Trade safe and prosper.
Trap
GBPAUD Weekly Technical Outlook
GBPAUD market operation on the weekly time frame has made a 61.8 retracement of the downward swing from the 2.05330 high to the 1.68350 low, and is attempting a further northward push within a rising channel (purple). Presently, price action is at the 1.91490 horizontal resistance area, which is in confluence with the 61.8 Fib retracement of the downward swing from the high of December 16, 2019 to the low of December 23, 2019, and where it is struggling to gather bullish momentum.
On the daily time frame, market operation has made a 61.8 Fib retracement of the drop from the high of December 16, 2019 to the low of December 23, 2019 and is now around 1.91490. This came about after the bullish print of Wednesday last week failed to have a follow-through as price action could only print insignificant candlesticks with a bearish tint on Thursday and Friday. Any further bullish move is likely to hit some barrier at the 1.92760 horizontal resistance area (magenta). Recent technical patterns on the daily time frame suggest a likely southward turnaround, potentially targeting the 1.80710/1.87680 horizontal support zone (light green).
I may be wrong. Trade safe and prosper.
Trap
EURGBP Weekly Technical Outlook
The EURGBP market has disposed southwards in the past few weeks. However, price action is presently in consolidation. On the weekly time frame, six weeks ago, market operation retraced northwards from the 0.82820 horizontal support area but there was no follow-through in the weeks that follow. A period of sideways price action followed in the next four weeks with the printing of miniature indecision candlesticks before bears influenced a southward mode last week. Presently, market operation is at the 0.84330 horizontal support but there is potential for further move to the 0.82820 area.
On the daily time frame, price action has been within a falling channel (blue) for quite a while. On January 13, 2020 bulls overshot the channel resistance trendline to retest the broken-down horizontal S/R at the 0.85830 area (red) but bears effected a southward turnaround the day after. Technicals on the daily time frame favour a bearish continuation.
On the H4 time frame, we have had sideways operation in the last few sessions on Thursday and Friday. But, presently, bulls are making a push northward; which is technically a retracement, perhaps to an area of value such as the broken-down previous horizontal support at the 0.84770 area, before a southward turnaround.
I may be wrong. Trade safe and prosper.
Trap
EURUSD Weekly Technical Outlook
The EURUSD market operation on the weekly time frame is within a falling wedge (blue). Presently, it is disposed southwards from the wedge resistance trendline after a star pattern was formed at the 1.11720 horizontal resistance area (purple). The order flow context and recent technical patterns support a southward mode.
The daily time frame shows a consolidation of market operation within a rising wedge (magenta). The wedge was broken down on Thursday and bears effected a follow-through on Friday. Price action is presently at the 1.10245 area but the next horizontal support is a few pips below, at the 1.09850 area, so we may not have a bearish drive yet. A bearish breach of the 1.09850 area may see the 1.08820 inception area (green) exposed.
I may be wrong. Trade safe and prosper.
Trap
XAUUSD Weekly Technical Outlook
The XAUUSD market continues to dispose positively. On the monthly time frame, bulls printed a northward continuation candlestick in January after a three-month sideways of market operation. It hit a multi-year high around 1612.10 from where bears effected a southward pressure. Presently, market operation is around the 1588.90 area but the technicals still favour bulls.
On the weekly time frame, operation has moved further northward of a rising trendline (purple) traceable to May 2019. The past five weeks have seen the printing of ambivalent or relatively miniature candlesticks, indicating a slowing down of bullish momentum. We may see a retracement southward soon for a retest of the rising trendline.
Although the market is still technically disposed northward on the daily time frame, with price action respecting an inner rising trendline (blue), the order flow is seeing an increase in bearish influence. Any bearish turnaround may see a retest of the horizontal support around 1555.30 while a bullish continuation may target the 1612.10 area.
I may be wrong. Trade safe and prosper.
Trap
1 Like
AUDUSD Weekly Technical Outlook
The AUDUSD market is generally disposed southward but has seen a period of consolidation since August 2019. On the monthly time frame, the 0.70610/0.66600 zone has served as a significant channel for market operation since May 2019. In January 2020, a bearish candlestick was printed from around the upper boundary of the channel and it nestled only a few pips shy of the lower boundary. We should expect some sideways or pullback of market operation in the 0.66600 area as it is a significant horizontal support.
On the weekly time frame, price action was in a period of consolidation but recently has disposed southward. Last week, the market printed a relatively big bearish continuation candlestick. Presently, market operation is located a few pips above the 0.66600 horizontal support (green), which is significant on the monthly time frame, and we can expect a sideways or northward pullback of price action in the early part of this week.
Recent price action on the daily time frame is bearish but is parabolic in nature; we can expect a northward pullback to an area of value in the early part of this week. An initial area we may expect price action to pull back to is the 0.67620 area (magenta). Should the area be breached northward, we may see the 0.68450 area (purple) exposed before a southward turnaround.
I may be wrong. Trade safe and prosper.
Trap
GBPAUD Weekly Technical Outlook
GBPAUD has disposed northward since August 2019. On the monthly time frame, a bullish continuation candlestick was printed in January after a sideways of market operation in November and December 2019. Presently, market operation is at the 1.97420 horizontal resistance area.
On the weekly time frame technicals still favour a bullish mode. Market operation has moved above an outer rising trendline (red) to respect an inner rising trendline (blue), indicating an increase in bullish momentum. However, it is presently located around a horizontal resistance and is too far from the mean. Therefore, we may have a southward pullback of price action in the early part of this week.
On the daily time frame, price action has moved too far from an active rising trendline (magenta) and is technically due for a retest or pullback.
A parabolic display of recent price action can be seen on the H4 time frame and is too far from a minor support trendline (black). Apparently, a southward pullback or corrective action is imminent.
I may be wrong. Trade safe and prosper.
Trap
GBPUSD Weekly Technical Outlook
The southward operation of the GBPUSD market hit a bottom in August 2019. Since then the market has disposed northward in a technical correction. On the monthly time frame, the bullish print of October 2019 failed to have a follow-up in November, which saw an ambivalent candlestick print. Also the bullish print that followed in December was not emphatic as bears exerted some pressure, resulting in a top shadow. In January 2020, the market printed an ambivalent or doji-like candlestick. This print of an ambivalent candlestick is symptomatic of a decline in bullish influence or a slowdown of bullish momentum and we may expect an increase in bearish pressure in February.
On the weekly time frame, between six and three weeks ago, market operation, which had disposed northward, made a southward retracement to the 1.29690 horizontal support area. Since then, a northward mode has kicked in; but the 1.32980 horizontal resistance area is technically an immediate challenge for bulls.
Recent order flow and price action on the daily time frame indicate the likelihood of further northward move but the 1.33360 horizontal resistance area should be watched for potential challenge to bulls.
I may be wrong. Trade safe and prosper.
Trap
EURUSD Weekly Technical Outlook
The EURUSD market was disposed southward for quite a long while in 2019 but, recently, it has been in consolidation. On the monthly time frame, market operation in the past seven months has been within the 1.13070/1.08980 zone. In January, the market printed a bearish candlestick with a bottom shadow within the middle of the zone. This indicates that bulls were giving bears some fight and we can expect more bullish pressure in the early part of February.
The weekly time frame shows a EURUSD market in consolidation. Last week, the market printed a bottom tailed bullish candlestick in opposition to the bearish candlestick printed a week earlier. The bottom tail indicates that we can expect bulls to be more influential than bears in the interim. The 1.11820 area is a horizontal resistance, which potentially may hinder a bullish drive and is likely to yield a southward turnaround should price action get there.
The daily time frame shows the EURUSD price action in a bullish mode within a consolidation phase. Since October 2019, price action has been operating within a horizontal channel spanning the 1.09960/1.12210 zone (bound by purple horizontal lines). Last week Thursday, bulls moved price action from the lower boundary of the channel, and it was followed up with a strong bullish drive on Friday. There is potential for further bullish move to at least the 1.11760 horizontal resistance area. At any rate, any bullish drive is likely to be temporary. I will only be interested in a southward turnaround as the longer-term technical outlook favours bears.
The H4 time frame shows a bullish momentum of price action within a consolidation phase. Technically, we may see price action go as far as the 1.11670 minor horizontal resistance area before a southward turnaround.
I may be wrong. Trade safe and prosper.
Trap
1 Like
