Hello,
I’ve decided to put together my own analysis for the upcoming week, and trading during next week on majors plus a few crosses. Also on metals, gold and silver.
Let us begin…
EURUSD
There has been negative divergence on the weekly chart, and I do not know how long this rally can survive, but given that we had a very bullish close on the weekly chart, with oscillators still show room for further upside. A further upside room towards 1.44/45 levels can’t be ruled out with the aid of strong support now formed at 1.4000 lows.
Next upside targets 1.4360 then 1.4400, 1.4500.
On the downside, sell a sustained break of 1.4000, for a target of 1.3850.
Overall, the pair should trend higher in new week supported by very bullish close on the weekly chart. But I would not recommend buying, the rally is overextended.
GBPJPY
A sell signal has been generated on the weekly chart. Supported by key bearish outside candlestick, very common pattern. The previous candlestick was almost a doji as well supporting the case for a stronger correction underway.
Favoured strategy: sell rallies
Target would be 229-228, with a sustained break forming a more stronger recovery towards 220/210.
A move back above 240 would damage the signal.
i got in at 1.4216 i hit the target and get out at 1.4281
now look for buy at 1.4270 1pt 1.4346, 2pt 1.4474 stop 1.4233
risk reward 33/76
I worry about ‘unwinding’ carry trades. Any idea how crosses/jpy will be next week?