The Weekly Update: Trade Setups For the Upcoming Week

Trade Setups For the Week

This week we would like to share with you our technical observations in the Foreign Exchange market. In light of recent fundamental events that are overshadowing the market, Greece and Draghi’s Quantitative Easing (QR) program many currency pairs are held into a tight range. Such market conditions are great for scalping and intraday strategies but do not qualify for our swing, medium and long-term analysis. After reviewing  multiples currencies from the market we will not issue trade alerts today as we do in our weekly updates. However, as we mentioned earlier these are our technical observations for this week where a higher or lower price is required in order to establish a trade alert in the market.

EURNZD Technical Analysis

After realizing a decent profit over the long trade in EURNZD, the cross was heavily sold, posting a new fresh low for 2015. The recent weakness however may provide a dip-buying opportunity in the daily chart.

EURNZD Daily Chart

Please click on the chart to enlarge:

EURNZD Daily Chart, 13/04/15

EURNZD Daily Chart, 13/04/15

A test o the support line is required in order to determine its strength and to ensure it is sufficient to take a long trade with a protective stop concealed below.  We will wait for the market to open in order to determine if an entry can be established via the 4hr chart which will not require a lower price level and a test of the support line. An intraday entry mat allow us a tighter stop that is intertwines with a moderate risk in due to recent fundamental developments. We will re-assess the markets at 21:00 GMT. If no entry is provided we will keep monitoring EURNZD for the rest of the week.

GBPCHF Technical Analysis

GBPCHF has been one of our favourite currency pairs as we anticipate moderate gains in the cross. However, a technical entry is still unavailable at the time of this writing.

GBPCHF 4hr Chart

Please click on the chart to enlarge:

GBPCHF 4hr Chart, 13/04/15

GBPCHF 4hr Chart, 13/04/15

Although this trade can be taken off the daily chart we are showing you the 4hr chart of the cross. The potential is for a reversed Head-And-Shoulders (H&S) where further weakness is required in order to complete the right-hand shoulder of the reversal pattern. There are 2 potential support levels that upon a re-test could provide us a with a neat entry (displayed on the chart). Should an entry be provided this week you will be instantly notified via an email.

Despite expectations from the Bank of Japan (BOJ) to expand its easing measures we are unable to locate a technical entry that justifies a weak Japanese yen (JPY).

Key Technical Levels

The price levels are derived from the 4hr chart and may be used for placing stops, take profits and/or breakout strategies.

 EURUSD  1.0553  1.0653
 GBPUSD  1.4545  1.4725
 AUDUSD  0.7648 0.7695
 USDJPY 119.78  120.60
 EURJPY  127.20  128.42
 USDCHF  0.9740  0.9831

17/04/15 UPDATE: Although our analysis was inline with the market at the beginning of the week we weer unable to receive a technical entry based on our models. The weekly update can now be accessed by all traders. Our latest market strategies are displayed at the homepage.

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