Good day great traders,
I officially welcome you to the last day of the month of September. How did your trading go this month?. For those who struggled throughout this month, I hope you have tightened those screws in your trading system.
For those who did well, I hope you put a boost to your trading machines and most importantly, don’t get carried away this new month of October?
From my point of view, October promises to be a great month as I can see so many good setups lineup in just the first week of the month.
So, let’s get right into our charts and see what’s going down this brand new week.
1. NZD/JPY
Last week on NZD/JPY, price consolidated between level 74.794 and 75.511.
In the first week of the month of October, we have to be patient enough to witness either of the two breakouts (74.794 and 75.511) before trading the NZD/JPY.
If price breaks the current support level (74.794), we will most likely see price start another bearish run to the next support level (74.086) which coincides with the former breakout.
If the bulls are strong enough to breakout from the present resistance level (75.511), we will definitely see price hit the next resistance level (76.298).
2. XAU/USD(GOLD)
Do you remember this bad boy (gold) from our Thursday’s analysis?
Let me recap:
There was a bearish breakout from a pennant on Thursday. This occurred on the daily chart. The breakout ought to have given way to a more bearish movement of price on Friday
But hey,
it was a Friday, and I explained in a previous article of what Friday’s market is all about, in case you missed it, you can check that here
There was a massive pull-back on gold’s breakout on Friday. This pullback is presently on the same price level where the breakout commenced on Thursday.
On the 4 hours chart, this pull-back has formed a beautiful descending channel. If the current resistance level at 1194.06 rejects price, we may most likely see price re-visit level 1181.64.
If price breaks through level 1194.06, bulls may take price to level 1198.20 which is the next key resistance level.
3. CAD/JPY
CAD/JPY moved exactly as we predicted on Wednesday
Price broke broke out from the support level (86.851), and the bears took price to level 86.508.
Friday’s candlestick ended with a bullish Marubozu which signifies a strong bullish move. This bullish move shattered the former resistance level (87.429). Our next resistance level for the first week of October would be level 89.279.
However we should expect a pull-back as we resume a new week this Sunday. After the pull-back, there is every tendency that the bulls will dominate the market, and price will most likely hit the next resistance level (89.279).
4. EUR/CAD
Euro is taking a serious beating after the Canadian Dollars gained massive strength on Friday.
EUR/CAD has currently broken out from a key support level (1.50123). If the Canadian dollars resumes with the same strength it had on Friday, we should see price continue it’s bearish run to the next support level (1.48054)
Although I do not expect an immediate bearish movement without a little pull-back first.
Please comment if you have contrary views or if our analysis has helped you in any way.
Till our next analysis, do have a pip-full week ahead and remain phenomenal
