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
USDCAD Weekly Technical Outlook
The USDCAD market continues to maintain a bearish tone. On the monthly time frame, in August 2020, market operation broke down a rising trendline (red) that had been in place since 2010. A sideways of market operation followed and was maintained for four months. There was a bearish breakdown from the sideways in December 2020 before market operation again turned ambivalent for a month, but a bearish drive of market operation was restored in March 2021. Meanwhile, the May market operation has moved further southward of the bearish operation in April. Nevertheless, we should note that market operation is getting close to the 1.20430/1.18010 multi-year horizontal support zone (green) even though, technically, there is still room for further bearish ambition.
USDCAD market operation is presently in a bearish mode within a falling channel (blue) on the weekly time frame. Two weeks ago, market operation broke below a minor horizontal support around 1.23580 (magenta) and a bearish continuation candlestick was printed last week, indicating that a technical southward mode is still favoured by the market.
On the daily time frame, price action is in a falling wedge (purple) within a larger falling channel (blue) seen on the weekly time frame. Although technicals on the daily time frame favour a bearish price action, recent candlestick prints show a decline in bearish momentum. A relatively big bearish candlestick was printed on Thursday that broke below an area of sideways price action which had been in place for five days. But the Thursday candlestick was followed by a smaller bearish candlestick with a long upper shadow on Friday, indicating a bullish drag on price action. We should note that the latter candlestick ‘top-wicked’ at the wedge support trendline, giving room for a potential ‘northward’ retest of its high by price action. Technically, we may see some decline in bearish momentum in the early part of this week. This may be in terms of a brief northward pullback or sideways of price action. However, this does not mean that the technical bearish structure of the market is mitigated.
I may be wrong. Trade safe and prosper.
Trap
EURUSD Weekly Technical Outlook
Technically the EURUSD market is bullish. On the monthly time frame, the interim market operation in May is above the close of the bullish candlestick printed in April. Technically, the last nine months have seen the market operating in the 1.16135/1.23450 horizontal channel (blue). The December 2020 peaked at the upper boundary of 1.23450 from which the January 2021 bearish candlestick originated. Technically, we can expect a bullish retest of the 1.23450 area should bulls maintain their influence in the market.
On the weekly time frame, market operation is within a rising channel (magenta). Presently, there is a bullish mode within the channel as the bullish candlestick printed last week moved market operation northward of a consolidation area that was in place during the previous two weeks. Order flow context shows a recent bearish correction of a bullish impulsive move and we can expect a bullish continuation in the early part of this week.
On the daily time frame, technicals and order flow context support a bullish price action. Recent price action is respecting a rising trendline (blue) and the order flow from the bearish drop that began on February 26, 2021 indicate the formation of an extended ‘W’ pattern, which may peak further northward, probably at the 1.22430 area, which is around the high of the bearish pinbar printed on February 25. We may see further bullish move in the early part of this week before any bearish pressure.
I may be wrong. Trade safe and prosper.
Trap
GBPUSD Weekly Technical Outlook
Technically, the GBPUSD market is sideways but, presently, the market operation has a bullish mode. On the monthly time frame, the April candlestick print was ambivalent, following the bearish print of March. Meanwhile, the interim market operation in May has a bullish tone. Any further bullish move may see market operation attempt a test of the high of the bullish candlestick printed in March, a high that ‘wicked’ into the 1.42040/1.43560 multi-year horizontal resistance zone (red). The 1.35200 area (green) is a significant horizontal support.
On the weekly time frame, the technical structure is still bullish. Market operation is respecting a rising trendline (blue) and the bullish candlestick printed last week has inched far above the area of consolidation that had been in place for two previous weeks. The order flow context shows liquidity above the present location of market operation, mainly by previous ‘top-wicky’ prints and equivalent tops. Technically, we may see further bullish move before a bearish mode of market operation.
On the daily time frame, price action is respecting an inner rising trendline (red) traceable to September 2020. Technically, the series of ‘W’ patterns – two consecutive ones between March 23 and May 7 – with the May 7 bullish move being part of the process of completing the current ‘W’ pattern, indicate a potential for further northward move. Besides, the order flow context shows huge open space above current location of price action, which could attract liquidity interest of bulls. We may see further bullish price action in the early part of this week.
I may be wrong. Trade safe and prosper.
Trap
Technically, despite recent sideways, XAUUSD market operation still favours bulls at least in the early part of this week. I will provide details before the market opens.
Stay safe.
Trap
XAUUSD Weekly Technical Outlook
The XAUUSD market structure still favours bulls despite recent sideways of market operation. On the monthly time frame, the general long-term bullish technical structure was restored in April after a corrective market operation spanning eight months, respecting a rising trendline (red) traceable to October 2018. The interim market operation in May has a bullish tone, having inched above the high of the April bullish candlestick.
On the weekly time frame, the swing high from 1482.27 to 2075.03 made a retracement to around the 61.8 Fib zone eleven weeks ago before market operation restored the bullish tone. Market operation is presently respecting a long-term rising trendline (red) aligned to the monthly time frame. The order flow context favours further bullish move.
On the daily time frame, price action is in a rising channel (blue) and presently at the channel resistance trendline. Price action has been at play at the upper area of the channel and has been attacking the channel resistance trendline for five of the past six days. Technically, we may see further bullish price action at least in the early part of this week before any bearish rejection.
I may be wrong. Trade safe and prosper.
Trap
USDCAD Weekly Technical Outlook
The USDCAD market maintains its bearish technical outlook. On the monthly time frame, the bearish breakdown of the 1.27010 area (magenta) in March has continued. A bearish continuation candlestick was printed in April and the interim bearish print in May is below the April low. Meanwhile, market operation is presently tackling a horizontal support in the 1.20867/1.19110 zone (green).
On the weekly time frame, two weeks ago, market operation broke below a minor horizontal support around 1.23550. It is presently at another horizontal support, the 1.20867 area, which is the upper boundary of a major horizontal support zone, the 1.20867/1.19110 zone (green). Last week, an indecision candlestick was printed at the upper area and we may see some bearish hesitation or a brief bullish pullback in the early part of this week. This, however, does not discount any further bearish push as there is still room for liquidity grab in the 1.20867/1.19110 zone (green).
On the daily time frame, there was a bullish pullback of the general bearish outlook between Tuesday and Thursday last week before bears seized the initiative with a bearish engulfing candlestick on Friday. Presently, price action is at the 1.20867 area, an area that is seeing a sideways of price action. We may see some bearish hesitation or a brief bullish pullback in the early part of this week. However, should bears maintain their pressure on price action, we may see the 1.19110 handle exposed; the 1.19110 area is the lower part of the 1.20867/1.19110 horizontal support zone seen on the weekly time frame.
I may be wrong. Trade safe and prosper.
Trap
EURUSD Weekly Technical Outlook
The EURUSD technical market structure is bullish although we are having an increase in bearish pressure. On the weekly time frame, the 1.16010 to 1.23490 northward swing completed an 88.6 Fib retracement seven weeks ago in confluence with an outer rising trendline (red) traceable to April 2020. Presently, market operation is respecting an inner rising trendline (blue) from recent lows. Tow weeks ago, market operation made a bullish breakout from an area of consolidation that was in place for two weeks. However, there was no bullish follow-through last week as market operation printed a long-tailed doji-like candlestick with a bearish tinge that failed to break above the bullish candlestick of two weeks ago. This indicates that bulls are not fully in control of the market. Nevertheless, we cannot discount a bullish move in the early part of this week, perhaps to test the 1.22340/1.23245 area (red), which is the immediate significant horizontal resistance zone.
On the daily time frame, price action is bullish within a rising channel (blue) aligned with an inner rising trendline seen on the weekly time frame. However, it is presently tackling the consolidation at the 1.20600/1.21670 zone (purple) after a bullish move from the channel support trendline on Friday. Any bullish follow-through in the early part of this week may expose the 1.22340 handle, the lower boundary of the significant 1.22340/1.23245 horizontal resistance zone (red) seen on the weekly time frame. A bullish failure may incentivize a drive for a bearish rejection that may initially retest the 1.20600 lower-boundary of the 1.20600/1.21670 consolidation zone (purple)
On the H4 time frame, the technical market structure still favours bulls. However, price action is getting near to 1.21670, the upper boundary of a consolidation area seen on the weekly time frame. The area is susceptible to a bearish rejection. Technically, the order flow context offers an opportunity for a bullish move to grab liquidity before a bearish rotation.
I may be wrong. Trade safe and prosper.
Trap
GBPUSD Weekly Technical Outlook
The GBPUSD technical market structure is bullish but market operation is presently in a horizontal channel. On the monthly time frame, the 1.36720/1.42420 zone (purple) is the prevailing horizontal channel for market operation. The interim May market operation is bullish within the zone and is about 150 pips from its upper boundary.
GBPUSD market operation is still respecting a rising channel (red) from June 2020. Presently, a bullish market operation is being maintained in the channel after a northward breakout from an area of consolidation two weeks ago. Market operation is about 150 pips from the 1.42420 area, a significant horizontal resistance area which may be a barrier to any attempt for sustained bullish momentum.
On the daily time frame, price action is still bullish. But presently it is tackling an area of consolidation which has been in place since May 10. Technically, we may see further bullish move in the early part of this week but there is increased bearish pressure as price action makes a further attempt to retest the significant 1.42420 horizontal resistance area, an area it last visited on February 24 before a strong bearish drop. It will take a significant break above the area for any bullish momentum to be sustained. Any bullish failure may incentivize bears for a southward rotation.
I may be wrong. Trade safe and prosper.
Trap
The USDCAD is still bearish. However, there is an increased bullish pressure as market operation navigates a multi-year low. I will post technical details on this and three other pairs before the market opens.
Stay safe.
Trap
USDCAD Weekly Technical Outlook
Technically, the USDCAD market structure is still bearish. However, the bearish momentum is declining as the market navigates a multi-year low. On the monthly time frame, the last two months have seen the printing of bearish continuation candlesticks. The interim May print is bearish and, presently, market operation is at the 1.20540 area, which is a multi-year low created in September 2017. However, this is part of the 1.20540/1.19000 significant horizontal support zone (green).
On the weekly time frame, the last two weeks have seen the printing of two relatively miniature candlesticks. Nevertheless, technically, bears still have the potential to push for the lower part of the 1.20540/1.19000 significant horizontal support zone (green).
Price action on the daily time frame is in a sideways mode but the technical market structure is still bearish. Thus, any bullish price action in the early part of this week is likely to be corrective or temporary in nature. We are likely to see further bearish move after any such correction.
I may be wrong. Trade safe and prosper.
Trap
EURJPY Weekly Technical Outlook
Technically, the EURJPY is still bullish. However, there is an increase in bearish pressure. On the monthly time frame, bulls have been making steady northward push, but the 135.10/137.40 zone (red) is a major horizontal resistance; it was from there market operation made a southward turnaround in February 2018.
Market operation on the weekly timeframe is respecting a rising trendline (red). It is still technically bullish but experiencing an increase in bearish pressure. Last week, market operation printed an indecision candlestick in contrast to two relatively big bullish continuation candlesticks printed in the previous two weeks. If bulls regain their influence in the market, we may see further northward push in the early part of this week; otherwise, we may have either a sideways or bearish mode of market operation.
Price action on the daily time frame is in a rising channel (blue) after moving above an outer rising trendline (red) seen on the weekly time frame. However, the order flow is mixed. Last Wednesday, price action printed a doji-like candlestick with a bearish tinge at the channel resistance trendline, resulting in a sideways of price action. This indicates an increase in bearish pressure. Should bears maintain the pressure, we may see a southward pullback, perhaps to retest the channel support trendline, in the early part of this week.
I may be wrong. Trade safe and prosper.
Trap
EURUSD Weekly Technical Outlook
Technically, the EURUSD market structure is still bullish but diminishing in momentum. On the monthly time frame, the interim market operation in May is in a bullish mode after breaking out of the consolidation that was in place between March and April. Although the market operation is experiencing a decline in bullish momentum, there is still room for bullish surge for liquidity grab. The 1.24270 area (red) is the next horizontal resistance.
Market operation on the weekly time frame is in a rising channel (red). The bullish market structure has witnessed a 38.2 Fib retracement of the major channel swing from 1.07980 to 1.23490 to respect the channel support trendline and has been on a northward mode in the last seven weeks. However, the candlesticks printed in the last two weeks have been relatively small and presently market operation is sideways. Although this, technically, indicates a slow-down in bullish momentum, the market structure still favours bulls.
Price action on the daily time frame is in an inner rising channel (blue) within a larger rising channel (red) seen on the weekly time frame. Presently, price action is sideways. The fact that this sideways came just after another sideways of price action a few days back indicates a weakness in bullish momentum. The 1.22940/1.23415 area (magenta) is the next significant horizontal resistance on the daily time frame. Personally, I will await price action to provide directional clarity in the early part of this week.
I may be wrong. Trade safe and prosper.
Trap
GBPUSD Weekly Technical Outlook
The GBPUSD market structure is still technically bullish but there is increased bearish pressure. On the monthly time frame, market operation moved above an area of consolidation in April for a bullish mode in May. The interim market operation in May inched to the high of the February candlestick before experiencing a bearish pullback. The immediate horizontal resistance is around the 1.43560 area (red).
Technically, GBPUSD market operation on the weekly time frame is bullish. Market operation is respecting a rising trendline (red) traceable to June 2020 and the candlesticks printed recently favour a bullish continuation. The order flow context, with ‘wicky tops’ above the present location of market operation, may incentivize liquidity grab by bulls.
Price action on the daily time frame is presently above an inner rising trendline (blue) from lows traceable to November 2, 2020, having moved away from an outer rising trendline (red) seen on the weekly time frame. Meanwhile, price action is sideways, producing ‘wicky’ tops as it tackles a minor horizontal resistance around the 1.42410 area (magenta). Should bulls maintain a strong influence in the market, we may see further northward push, but any bullish misstep may incentivize bears for a southward pullback.
I may be wrong. Trade safe and prosper.
Trap
GBPUSD Weekly Technical Outlook
The GBPUSD market is still technically bullish. However, on the monthly time frame. Market operation is presently navigating a multi-year horizontal resistance zone spanned by 1.42220 /1.43750 (red). This is another retest of the area after a bullish surge to the area in February 2021.
On the weekly time frame, the order flow context shows bullish continuation candlesticks. However, the recent candlesticks printed in the last two weeks have been relatively small and ‘wicky’ as the market operation enters a the 1.42220 /1.43750 multi-year horizontal resistance (red), indicting a decline in bullish momentum. A technical rising line (red) traceable to late-June 2020 is still in place, and it is supportive of the bullish market structure.
On the daily time frame, although the technical market structure is still bullish, the market operation is in a sideways mode around the lower boundary of the 1.42220/1.43750 multi-year horizontal resistance seen on the monthly time frame. Caution is advised until price action gives a directional clarity, perhaps after the early days of trading this week.
I may be wrong. Trade safe and prosper.
Trap
EURUSD Weekly Technical Outlook
The ERUSD market is still technically bullish. However, on the monthly time frame market operation is navigating the horizontal resistance at the 1.22160/1.23380 area (red).
On the weekly time frame, market operation is in a bullish mode within a rising channel (red). However, it has entered the horizontal 1.22160/1.23380 area horizontal resistance area (red) seen on the monthly time frame. Although recent candlesticks have primarily lacked directional potency, the order flow context offers potential for bullish liquidity grab. Any bullish misstep may see a bearish charge for a southward pullback or sideways of market operation.
On the daily time frame, price action is grinding northward within a rising channel (blue) within a larger rising channel (red) seen on the weekly time frame. But, presently, price action is largely sideways. Last week Thursday price action printed a miniature, ambivalent candlestick at the lower end of the channel after a relatively strong and big bearish candlestick was printed on Wednesday. On Friday, price action printed a long-tailed doji-like candlestick at the channel support trendline, confirming the market ambivalence.
I may be wrong. Trade safe and prosper.
Trap
USDCAD Weekly Technical Outlook
The USDCAD market is still technically bearish. However, on the monthly time frame, market operation is navigating the 1.20540/1.19220 multi-year horizontal support area (green).
Market operation on the weekly time frame is primarily bearish and grinding southwards within a falling channel (red). However, presently it is in an ambivalent mode as the candlesticks printed in the past two weeks have been mixed and relatively small. This is a slow-down in bearish momentum as market operation navigates the 1.20540/1.19220 multi-year horizontal support area (green) seen on the monthly time frame.
Price action is presently sideways on the daily time frame. It has entered a multi-year horizontal support area (green) seen on the monthly time frame. Nevertheless, the technical structure still favours bears
I may be wrong. Trade safe and prosper.
Trap
The GBPUSD market is technically bullish but it is in a sideways operating mode. I will give details of my technical perspective on this pair and three others by the market open.
Stay safe.
Trap
XAUUSD Weekly Technical Outlook
The XAUUSD market is technically bullish. On the monthly time frame, a relatively bullish continuation candlestick was printed in May, but the candlestick high is just about 180 pips above the 1898.00 previous horizontal resistance level (purple). Nevertheless, in the past, some ‘wicky’ candlesticks had been printed northwards of the area; a pattern that may incentivize bulls for liquidity grab.
On the weekly time frame, the order flow context supports bulls. However, presently, the market operating mode is sideways – the last two weeks having printed two opposing candlesticks of almost equivalent size. Technically, this is a corrective mode, and bulls are still favoured more than bears in the early part of this week.
On the daily time frame, price action is in a rising wedge (red). Last week Thursday, a relatively big bearish candlestick broke down the 1907.30/1898.00 area of consolidation (purple) that has been in place near the wedge resistance trendline for six days but failed to hit the wedge support trendline. On Friday, although there was an initial bearish surge to the wedge support trendline, a bullish sprint during the session later aligned price action northward. Technicals and the order flow context favour bulls more than bears.
I may be wrong. Trade safe and prosper.
Trap
