Monday Market Update – Quick Charts Technical Analysis

*Quick and simple technical analysis for 2 FX trades I plan to enter this week*

Happy Monday to you all. In this blog post I am going to show you the technical analysis for 2 simple FX currency trades that I plan to enter this week if the markets move as I expect them to. It is only a quick blog post but I hope it might provide you with some inspiration for your own qehcinal analysis and charting. Enjoy!

USDCAD Long Trade.

USDCAD 1 hour timeframe chart
Near term price movements
USDCAD 1 hour timeframe chart
Medium term price movements

I like the look of a potential USDCAD long trade position for 2 main reasons. The first is the technical analysis. Price is bouncing off a near term bullish trendline (shown on the charts above) and I think there is a real chance it will begin to cross back above the 1hr 50EMA and on to new weekly highs.

After the initial bull run on US Dollar back in March, price has been forming one large wedge pattern and price actually broke out of the upper trendline which implies more bullish moves to come. This could provide long term gains in the price of USDCAD over the next few weeks.

The second reason is the fundamentals. USDCAD as an FX pair is very similar to Crude oil in the way it moves except it is inverse. Oil is trading at multi decade lows and shows no signs of recovery until the global lockdown rules are removed. I believe we will see negative futures prices on Crude oil again next month and this will bring the value of the Canadian dollar down further. It also seems that people are running for the US dollar when times get rough and I can see this happening again very soon which might coincide with another sell off in the US stock markets.

I am not trading this FX pair until price breaks above the 1hr 50EMA and daily pivot level. Ideally a break and retest of the bearish 1hr trendline would be a good long position entry.

You can follow the progress of this trade live via the TradingView Platform by clicking on the link below.

GBPAUD Long Trade.

GBPAUD 1 hour timeframe chart
Near term price movements

GBP has been experiencing extended bearish moves vs the Australian Dollar over the past two weeks and it has provided good daily selling opportunities. This run is extended and I am now looking for potential signs of a reversal to get in on and trade.

Price has been getting squeezed in to a tight wedge over the past few days and these patterns tend to produce high momentum trade opportunities when price breaks out. I am looking to enter on the break out of the upper wedge trendline and buy on the next intraday higher low that forms. This should coincided with a daily pivot level bounce or a price bounce off the 1hr 50EMA. It is more important than ever to use multiple confluences for entry analysis in these choppy and volatile market conditions.

Australian Dollar is bought when risk sentiment is high and sold when risk sentiment is low. I believe if we do see another stock market sell off and bearish behaviour then AUD should weaken and this will intern see the GBPAUD FX currency pair rise in value.

You can follow the progress of this trade live via the TradingView Platform by clicking on the link below.

End Note.

I am also still actively shorting the FTSE100 index as I feel that there is more downside to come in the UK stock market and economy. I am currently in my first short trade of the week at just under 5850 and I am looking to trade this down to around 5750 in the near term. You can see this position on my Instagram story from today.

If you haven’t seen my previous blog post on the FTSE100 index and stock market analysis then please click on the image below to read it now.

Useful Links:

All my technical analysis is done using the TradingView platform. You can get access via the link below.

My preferred broker of choice is IC Markets. Low spreads and trading costs really help long term profitability. A link to their site is below.

FTMO Trader Funding Programme.

Thanks for reading and please don’t forget to LIKE, SHARE and FOLLOW my blog to stay up to date with the latest market analysis and trading education posts.

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.

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