Forex Market Analysis [18/01/2020]
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 currency pair of the week that I will be looking at will be GBPAUD. There was trade last week that I took at 1.88546 with a 3:1 risk reward. I moved my stop loss to 2:1 and got stopped out on Friday. Bouncing off the middle parallel line, GBPAUD bounced multiple times in the past. This gave me confidence in the trade and I entered after the high of the previous day. On the daily timeframe, we can see a clear uptrend and the parallel lines are well respected from 2017 to 2020. These lines are guidelines to trade off. Just because its a line does not mean that price will just bounce off them exactly.
On the lower timeframe of 1H we can see that price was in consolidation for a large part of this trade. Once price broke it consolidated again and came back down. When price pullback I was taken out of the trade.
The next pair that I will be looking at next week will be GBPUSD. The trade is setting up for a nice short trade if we break the last weeks low. On the daily we have had a breakout oh the higher parallel line. If price comes back to the lows and breaks, I will be looking for a retest of the blue area and entering a short position to ride it down to the parallel line.
On the lower time frame 1H we can see that price struggled to climb higher but the candlestick at 1.31190 was a large engulfing. We are making lower lows and low highs on the lower timeframe which is a promising sign for a move lower.
It could have been a good short in the 1.30971 area if you were looking at the 1H timeframe last week. You would need to hold it over the weekend but it still looks like a great trade. This is obviously in hindsight.
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.