Hello fellow traders,
how has your weekend been?
I used mine to binge on a new series titled Breaking Bad
Personally, I only watch movies when highly recommended. As for this series, it was recommended by a fellow trader I met online, I read the reviews and started this weekend.
In my opinion, Breaking Bad is solid. If you want to be motivated in whatever you do, please go get that series and don’t just watch, but digest it.
Alright alright alright, let’s get down to business.
I noticed that we have some juicy setups lined up for the week (That is if they play out according to our analysis).
Let’s hit the charts, ladies and gentlemen.
1. AUD/JPY
The AUD/JPY is one pair to watch out for simply because price has broken out from two key support level.
1st support level: Price breaking out from the support level (72.918) of a descending expanding channel of the daily chart.
2nd support level: Price breaking out from the support level (72.918) of a horizontal support level on the monthly chart, which has been holding price from falling since 2009.
This is a very important support level as you can see.
There have been over 4 attempts to break this psychological level in the past 10 years.
If the breakout is confirmed, there is a huge probability we could be looking at a +700 pips fall in the next 3 to 4 months.
If we are lucky, we could experience that drop within a week or two.
2. EUR/JPY
On the daily chart, the EUR/JPY is resting on a key support level (118.292)
We may see a brief consolidation of price around 118.292 and 119.104 level as soon as the market resumes.
If the support breakout occurs, there is every likelihood that price could spill a little over +300 pips before the week runs out, making price level 114.971 as the next possible support level.
3. EUR/USD
On the 4 hours time frame, we can see a well defined descending channel on the EUR/USD and price is currently close to a key resistance level (1.11233).
Mind you, this bullish move we see on the 4 hours time frame is a pull-back from a breakout on the daily chart.
If a reversal of price is confirmed on the 4 hours chart, we may most likely see price revisit support level 1.10280
If a breakout is confirmed, the first resistance level price will visit is 1.11606.
4. EUR/AUD
The EUR/AUD is a pair that has been frequently been on our weekly analysis for quite some time now
On the daily chart, price has hit resistance level 1.64061.
If a reversal is confirmed, price next possible destination will be to support level 1.62022 and if a breakout occurs during the week, we may most likely see price go beyond resistance level 1.65573.
That’s it for the week guys.
Join us again tomorrow and all through the week for analysis of your favorite pairs.
Wishing you a pip-full week ahead
