EURNZD: Classic Bullish Setup EURNZD broke and closed above a neckline of a huge ascending triangle formation on a daily. Watch the underlined blue zone carefully. It is a contracting buy zone based on a trend line and a broken neckline. I will expect a bullish wave from that. Next resistance - 0.728
USDJPY: Key Levels to Watch This Week Here is my fresh structure analysis for ⚠️USDJPY. Resistance 1: 134.48 - 135.475 area Resistance 2: 137.6 - 138.6 area Support 1: 132.6 - 132.9 area Support 2: 129.7 - 131.05 area Support 3: 127.2 - 128.2 area Consider these structures for pullback, breakout trading.
Dollar Index (#DXY): Your Detailed Trading Plan We have spotted earlier a confirmed structure breakout on Dollar Index. The market is retesting that at the moment. To catch a bullish move from that with a confirmation, watch a double-bottom pattern on the 4H time frame. 104.05 - 104.09 is its neckline. Wait for its bullish breakout; we need a 4H candle close above that to confirm the violation. A bullish continuation will be expected then to 104.55. If the price sets a new lower low, the setup will become invalid.
#CADJPY: Bullish Outlook Explained CADJPY broke and closed above a solid horizontal supply zone on a daily. The broken structure turned into a demand zone. Probabilities are high that a bullish wave will initiate from that. The goal for buyers - 101.0
#NZDJPY: Pullback From Key Level NZDJPY is taking off from key support. The price formed a double bottom on that and broke its neckline. Goals: 84.35 / 84.8
#USDCAD: Important Breakout USDCAD suddenly bounced yesterday. The price formed a high momentum bullish candle, breaking a solid horizontal resistance and a primary falling trend line. I believe that bulls may push the price much higher now. Next goal - 1.366
DOLLAR INDEX (#DXY) Bullish Continuation Update for my yesterday's post on Dollar Index. The market successfully broke the neckline of a triple bottom pattern on 4H. We see a positive bullish reaction after a retest. A bullish continuation is expected now to 104.56 / 104.95
[Here’s why you need proper risk management in trading] Imagine: There are two traders, John and Sally. They both start with a $1,000 account John is an aggressive trader and he risks $250 on each trade. Sally is a conservative trader and she risks $20 on each trade. Both adopt a trading strategy that wins 50% of the time with an average of 1:2 risk to reward. Over the next 8 trades, the outcomes are Lose Lose Lose Lose Win Win Win Win. Here’s the outcome for John: -$250 -$250 -$250 -$250 = BLOW UP Here’s the outcome for Sally: -$20 -$20 -$20 -$20 +$40 +$40 +$40 +$40 = +$80 Do you see the power of risk management? So here’s the deal: As a trader, you’ll encounter losses regularly. But with proper risk management, you can contain these losses till it feels like an “ant bite”.
GOLD (#XAUUSD): Update & The Thing to Watch The market keeps coiling on a critical daily horizontal support. Analyzing a 4H time frame, I spotted a potential inverted head & shoulders pattern. The price has already completed the left shoulder and the head and currently, it is forming the right shoulder. 1842 - 1850 is its horizontal neckline. The trigger to buy Gold will be its bullish breakout (4h candle close above). A bullish continuation will be expected to 1866 / 1879 levels then. If the price sets a new low, the pattern will become invalid though.
#CADJPY: Pullback From Key Level CADJPY reached a solid horizontal key level yesterday. The price formed an inverted head & shoulders pattern on that on 1H time frame. Its neckline was broken then. I expect a bullish move to 100.0 / 100.25