Let's take a look at the major FX pairs and study their technicals and possible reversals for this week of June 22nd. How to read this post?
Start by glancing at the chart then
reading para. #1, then
look at the chart again, next,
read para #2 and lastly,
look at the chart again.
[Paragraph #1] Last week, EURUSD, failed to maintain ground above the Fibonacci Confluence Resistance Area at 1.1250 - 1.1235, as such exposing 1.1135.
[Paragraph #2] A close below on the 1H timeframe, will open the path for further decline to the Fibonacci Confluence Support area: 1.1005 - 1.0995. A bounce back to 1.1235 could be sold if sellers put pressure on the hourly timeframe.
[Paragraph #1] Moving on to GBPUSD, our previous week's trading plan was "to buy against Fib. retracement 1.2445 as long as lower-bound of channel keeps holding on the hourly timeframe and target a retest of 1.2645 resistance", however, that never happened because buyers were absent at 1.2445, therefore, market continued towards the Fibonacci Confluence Support Area (FCSA) at 1.2350-1.2335.
[Paragraph #2] The lower-bound of the channel has now turned into a resistance. Another attempt to close below 1.2350-1.2335 on the hourly, could expose support at 1.2110, hence make sure to have protective stops accordingly.
[Paragraph #1] Wrapping it up with the USDCAD pattern, we are still holding a long position from last Monday as a positional trade from 1.3500 as the pattern favors buyers as of yet. If you read our last week's plan then you probably are holding a buy here as well.
[Paragraph #2] The stop loss has been adjusted to breakeven and if the market gaps lower, we will monitor reaction at 1.3450 to see whether we hold one more time or breakdown towards 1.3300 danger zone.
The above is only a preliminary analysis on the market and, if need be, we always change according to price action and incoming market information. Most of the times, market swings around the levels mentioned above, however, a trader should always practice a flexible mind and adjust to changing trading environment.
If you want a trading plan on other markets then don't hesitate to contact us.
Until the next time, trade well!