We will explore our weekly setups for the week commencing 6th August 2018. You will see exactly how we analyse each Forex pair on various timeframes.
The Unemployment rate in Japan has increased from 2.2% to 2.4%, this could fuel the Bullish momentum on US Dollar against the Japanese Yen.
Our Daily chart confirms the USDJPY is in a Bullish trend and is respecting the support zone at 111.000. We expect price to retrace to our support zone and produce a rejection candle on the 4hr or 1hr timeframe which will rejoin the uptrend.
The Bank of England have increased the interest rates from 0.5% to 0.75%. This may cause the Pound to gain momentum against the US Dollar causing a pullback to support levels.
Our 4hr chart setup shows price could potentially pullback to 1.315 which is a key support zone on this timeframe.
We have identified multiple scenarios on the 1hr chart as we have 2 major key support zones at 1.30275 and 1.31000. If price does not respect these levels on the hourly chart then we will use 4hr.
Remember we can not control the movement of price so we have to be patience and always have the mindset to adapt.
The daily chart confirms GBPJPY is in a downtrend and is approaching key resistance zones around 143.500.
We will be anticipating a pullback on 4hr chart to support zone 145.500 or 145.000 on the hourly chart.
The daily chart confirms EURUSD is in a bearish trend and is ranging between 1.185 and 1.150. The Unemployement rate in the US has decreased from 4% to 3.9%, this will strengthen the downtrend on this pair.
We will be patiently waiting for a rejection candle on the 4hr or 1hr chart around 1.16 before rejoining the bearish momentum. Do not be surprised if this pair continues to push towards key resistance at 1.150 with no pullback.
Hope you all have a great profitable trading week. :-)