Forex Market Analysis [11/01/20 ]
Updated: Apr 1
Welcome to another weekly Forex market review. In these blog posts I show my opinion on the week ahead and the trades I will be watching. These are not trades I am taking or advising you to take. This is a platform for me to share my opinion on the market and to share my ideas. If you have your own opinion on what the upcoming week could hold, comment below this post and let me know.
The first pair that Im looking at for the next week will be GBPJPY. On the weekly timeframe there is a resistance level that Im looking at around 147.276. The overall trend is bearish and we have a level that price has respected multiple times in the past. Retail traders are indecisive around which way to trade.
If price comes up at the 147.276 area I will be looking to enter a short trade. Using the Fibonacci tool to place my stop loss above the highs and at 88.60%. The previous touch of this area could have been a good trade. Price could turn bearish here and I would miss this trade. Stay patient and wait to see what price does. Never chase price.
The next currency pair that Im looking at next week will be GBPAUD. This will another short trade and its very similar to the GBPJPY trade. Waiting for price to retest an area and entering with a stop loss above the high with a 3:1 risk reward. This is a very simple trading strategy that anyone can follow.
I have used the pitchfork tool in tradingview and order blocks to create a great trade setup. The pitchfork tool is something I had not used before but once I was shown the power of it by a mentor, I have started to use it. Now, this tool has become an essential tool that I use in my Forex trading.
This is a trade that I entered on the Friday last week. I wanted to show you this trade because of the sniper entry I got. This is something that I strive to copy in all of my trades. Of course this does not happen every time but when it does, its magical. It was a short term trade compared to my normal trading. On the 1H timeframe I took a 3:1 trade and I still have half of my position open on this trade.
The next trade that Im looking at will be EURAUD. This could be a nice trade and due to a longer term trend, it could be a trade that has a tight stop loss. On the weekly timeframe I have used the pitchfork tool to find possible support areas on EURAUD. We have just come back down to one of these support lines and It could be a good trade if we find support here. On the lower timeframe we can see this in more detail.
On the 4H timeframe we can see how price has rejected this area and it lines up with the 61.80% Fibonacci retracement tool. If price comes back down to this price, I will be entering a position. With a tight stop loss and a 3:1 risk reward.
If you are entering any of these trades during the week or have an opinions on the market. Comment below and let me know! I am always open to hearing other traders view on the markets. These are just my ideas for the markets and I am not a professional trader or financial advisor.
My weekly Forex tips area great if you are starting to get into trading or are interested in improving your trading. You can find them here on the Forex blog page.