Forex Market Analysis [25/01/2020]
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.
Firstly, I will be showing the EURO FX VIX. This is a 10 year monthly chart to show the volatility within the foreign exchange markets. As you can see volatility within the FX markets is very low and the markets are not moving with the same ferocity that they would normally.
We had a look at GBPAUD last week and got into a long trade that ended being a profitable trade. This was a short term trade where I just missed out on a 3:1 risk reward trade but got stopped out at 2:1.
This week, I am seeing a possible short trade opportunity next week. This trade is on the daily chart and could be a longer term trade. Not just waiting for the trade to present itself but also waiting for price to react to the level. It could have a large wick or consolidate around this area for a few days. Of course I hope to get a strong price movement to the downside.
Also could be a shorting opportunity now to short GBPAUD at 1.9186. I would prefer to get into the position at the higher price due to the better risk:reward ratio and confluence with the Fibonacci level and orderblock. If you are looking to get into trades early and are not worried about price coming up higher, it could be a great trade. Personally I like to get a sniper entry on price and have price reverse from my entry straight away.
The EURGBP trade could be a really nice trade. This is a short trade and the majority of the analysis was done on the 1h. I'm showing you the daily chart here so you can see the main support level that I'm looking at to take my profits.
Using Fibonacci there was a great trade to take here if you were able to catch it. I am now looking for this to happen again but over next week. I will be entering on the 70% retracement level 0.83101.
This is a 6.4 Risk:Reward ratio and looks like it is worth the risk.
This USDCAD trade is the best trade of the three that I'm looking at for the next.Super simple trade just using the Fibonacci levels and having a close stop loss. Another great trade that is 5:1 risk reward. Price rejected the 61.8% Fibonacci level and retraced into that level again.
Price has come back up into that area where I can sell. It has bounced off the 61.8% Fibonacci level for the second time. Using the Fibonacci tool twice on this trade has given me confidence to have a tight stop loss and to let the trade run.
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.