Last weeks predictions played out quite well and I had a positive week too which was nice. This week we have a bit more movement but still are in overall consolidation so these breaks of structure have their limitations but are opportunities nevertheless whether very high probability or not.
As alwasy I will take a look into my 4 pair portfolio and this week there is some things on my radar but nothing that I really want to be involved in. due to the overall consolidation going on.
As you see on the Euro we are putting in an inverted head and shoulders pattern potentially but very early stages. I would not be surprised if we actually go down to test the 1.20 level again. On the hourly I do have more of a short bias but quite a conservative one and I would’nt actually look at the 1.30 zone for entry just because of the contrast between the initial impusle and then the minor break makes me predict a deeper pullback which I would then be hesitant to take because we would have broken this zone on the way up. That is why I am just again waiting on the Euro to provide something that I have a bit more confdence in. GbpUsd is consolidating for me and on the 1hr we have put a head and shoulders too which I would personally say it has complete due to it reaching my ‘would be’ target so again I wait. I do have a valid cypher pattern which I would take if rules are still met and it completes.
On the Audusd like last week I would expect a retest of the 0.70 level and possibly a small break to the orange line but overall it is consolidating and I have no interest in it. on the 1hr the green zones are potential structure based setups for some relief but not ideal in my opinion. I would favour the lower level a bit more but then your room for profit is limited so like i said earlier nothing on for me. GbpAud I am interested in to see what actually happens but not to be involved. On the Daily we did hold the 1.84 level (green box 1hr) and we didnt really get a clean break on the 1hr even though we closed below. However we did put a head and shoulders here yet again which I think will carry on up. The only reason I wouldn’t take it is if we get a pullback to the right shoulder zone it is very deep and the probability decreases and as we are overall in consolidation I dont have a firm reason to believe it will go back up.
So that was my portfolio done and you probably can see how fussy or conservative I am with my approach but everyone has their style and sees different things. The more time I spend in the markets I begin to look for reasons why NOT to take the trade rather than why I SHOULD take it hence why I would come across fussy but I am begining to identify why some setups aer better than others in the long term and so on.
Dollar/Yen. I predicted the push up in the middle of the screenand actually hit taregts on the demo account. You can see the full prediction right here. However we have to move on and now I would look for a shorting opportunity on this. We are at a decent level of support so that has to be taken into consideration and it hasn’t been broken. However I think we will break it and go down to the top of the green box after a pullback around the red zone which has been respected a fair amount recently. Even though RSI is oversold on the swing which is why a pullback/relief can be expected, there is some divergence between the swings and thats what makes me think the pullback will extend to the red box. There is decent structure to put stops above so I think this is a decent opportunity to keep an eye on. However I want to reeitirate that we are currently holding the blue zone and that needs to be in your mind for this. If we carry on higer we actually have a cypher bearish pattern completing at 111.27.
As I dont really have any advanced patterns setup to show I thought I would do another one of these. UsdChf is very similar to UsdJpy in terms of the fact we don’t have a break of structure but I think we can go lower. We did break the blue line but entered another support zone straight away. Since we seem to be putting a flag formation which tends to break to the downside and you can either trade it at the top of the channel or wait until we enter the small red killzone highlighted. It lines up nicely with a 38.2% and a 50% retracement and provides a decent place for stops. I would however be mindful of the area slightly higer near the 61.8% but the probability of this setup decreases if we go up there in my opinion.
So there we have it. A few possible opportunities even though structure hasn’t really been broken but we have had an impulsive move and a pullback in progress. I will go over these on saturday to see how they played out. Check out my Instagram to keep up with these predictions and get involved with them. These are just opportunities that I see depending on my style of trading and agression and everyone has a different view which keeps the markets moving so be sure to share yours. Hope you found some valuable insghts and tips in this week’s predictions.