In this discussion, we will regularly write our views on currency pairs, stock indices or even commodities. Check it out and give us your opinion too. We are very passionate about markets, so there will be a lot to talk about!
There is a strong downtrend on AUDCAD lasting more than half a year, but this could change very soon! This currency pair is on the important zone, where we will probably see a pullback upwards. AUDCAD is currently at low of the trend channel which supports the idea that this currency pair will go up. Important is to wait for a buy signal and that would be strong and fast fall. There are two ways to approach this trading idea. First is to buy at support and use big stop-loss like 100-200 pips and try to catch a bigger trend, or wait for the market to give you the signal, which will probably come on Friday on 5th of October. There is a fundament for CAD – an unemployment rate. The market will probably push downwards until the results will come and then the market will go up. So, the second entry could come soon before the fundament with stop-loss 40-80 pips and it would make risk-reward ratio (RRR) much bigger. Good luck traders!
This currency pair is in a downtrend for a few years, but now we see an opportunity to profit on the rise. We expect AUDSGD to go up at least 100 pips, but maybe more. If you look at monthly/weekly timeframe, there is a strong support which withstood the pressure and now the market is going back up. AUDSGD is currently creating a formation double bottom (with small false-break) after we expect it to go to at least 0.985 and another profit target is 0.994. This bullish setup is also supported with divergence. Overall, all currency pairs with Australian Dollar looks bullish, so Australian Dollar should be strong in a next few weeks.
CHFJPY is falling since it made a pin bar on 21.9., so the decline on this currency pair already lasts 3 weeks. Now it has got in the zone where the pullback is possible. There is a support zone with Fibonacci levels 50 and 61.8, which are the most reactive. The market is also creating a divergence after which we expect at least a little movement upwards. We plan to execute the trade somewhere between 112-113 if our algorithms confirm this buy signal. Don’t forget that successful trading is about timing. We are patiently waiting for this trade.
USDCNH has been in the uptrend for a long time. This uptrend lasts already more than a half year. The strange thing about this uptrend is the fact, that there has not really been some significant correction. Only a few days of move downwards and then it would rise again. In August 2018, the market stopped close below resistance and psychological level 7.0000. Since then, it has been in a sideways. Recently we were witnesses of a break of the trendline, but it doesn’t have to mean the beginning of a downtrend. USDCNH can still go higher and retest psychological resistance 7.0000 and then go down. Or even make a strong breakout to the upside. From weekly/monthly timeframe it looks like a double top pattern. Anyway, we are awaiting move downwards, but the sell signal needs to be confirmed by our algorithm. We are watching this pair a few weeks already. Patience is truly important if you want to succeed in trading and we are proof of that because we are watching this currency pair since September and still did not enter the trade.
After one month of consolidation, we can finally see a breakout from the 300 pips zone. GBPJPY is giving a clear trading signal by breaking the trendline and support. After this, it will very probably go lower and the closest profit target is around a level 145.6. If the market goes back to 147, it would be a proper entry point for a short position.
Stop-loss could be placed at 147.8. GBPJPY was very lazy last month, so we should see some bigger moves soon. If GBPJPY fails to create a pullback from 147, we will probably witness a continuation of the uptrend which started in the middle of August.