*Technical Analysis and FX Currency News!*
Happy Monday! I thought I would use today to give you guys an insight in to the week ahead and show you one of the FX Currency pairs that I am looking to trade over the next few days. My idea is that you can then look to take this analysis and use the same simple analysis techniques on other FX currency pairs/Indices/Stocks.
Let’s start by recapping what happened with the Euro and Japanese Yen last week.
From the FX market open on Sunday night the Euro started strong with a nice gap up of around 25 pips on the EURJPY currency pair to show that bullish momentum was coming in. From Monday it continued to gain with 1hr higher highs and higher lows taking price from a weekly open of 124.547 to a weekly close above 126.500 showing a nice 1.6% gain. The chart below shows this with the weekly open and close prices marked on.
Firstly, the previous bearish trendline (drawn across the previous 4hr lower highs) has now been broken. This is an important sign that the trend is reversing and actually sellers are being bought out of the market.
Price also broke through the 4hr 50EMA last week which is another good indicator of the near term trend becoming bullish.
All of these confluences can be seen on the 2 charts below and I will now talk you through my ideal entries for long positions on the Euro vs Japanese Yen FX Currency pair.
With the recent bullish momentum I am now looking to only enter long positions on this FX pair. My ideal entry is marked on the 4hr chart above. I would prefer for price to make a fairly decent pullback down to retest the bearish trendline it broke last week. This would then coincide with the bullish trendline tracking the recent 4hr higher lows and the previous resistance zone which should now act as a support zone for price.
We also have the 0.618 fibonacci retracement level residing at 125.540 in the same area as the confluences listed above.
Remember, the key to entering high probably trades is by first making sure the higher timeframe is on your side and then layering multiple analysis points on the chart. The higher timeframe is taken care of with last weeks candle closing as a strong bullish engulfing candle.
DISCLAIMER: None of the information posted on this site is to be considered investment/financial advice. Trading is high risk and you should only trade with money you can afford to lose.
See how I analysed and traded the Euro vs US Dollar by clicking on this link https://diaryofafinancekid.com/2019/04/08/trade-breakdown-eurusd-long-april-19/
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