Dear Traders,
Welcome to the today’s article. We will be focusing on many currencies so grab that cup of coffee and get ready!
I will be analyzing the likely moves of the upcoming week or 2 (depending on how fast things progress).
I think this analysis will prove to be useful for any trader who is looking to capitalize on medium swings in the market. So please continue to read how to trade the majors in the next week or 2!
Of course, it is not an easy to task to make predictions in a week which is full of high level news events, such as interest rates, monetary statements and NFP figures, so please consider this when reading.
EURUSD
The halfhearted break of the bottom and 1.30 level on Friday has seen not bearish follow through as of yet. The 1 hour divergence and especially 4 hour divergence have had their effect on the currency and the EU has been progressing up slow but surely ever since. Due to the 4 hour divergence I still favor a bigger ABC retracement up to the 1.3140 area and later on even to the 1.3250 area.
The FX advice on how to trade the majors continue next with the GBPUSD.
For the Cable I am expecting a similar corrective scenario as for the EURUSD. Considering the fact that the ERUGBP is slightly correcting itself to the downside at the moment, I might expect a bit more bullishness on the GU than the EURUSD. This will logically last until the EURGBP resumes its uptrend. Eventually I am expecting the GU to reach the 1.5250-1.53 area after which there could be a decent fall to at least the 1.49 zone and potentially even further down.
The FX advice on how to trade the majors continue next with the USDJPY:
In my opinion the USDJPY up trend is not over yet. The big question is: from where and when will it continue to the upside? A break of the top would definitely signal a continuation. In that case waiting for a retest of the broken top is always a safe play. However if the UJ would indeed be looking to correct deeper, then there is a very nice confluence between the C wave target at the -618 and the 382 retracement Fib at 88.50. This would definitely be a long I do not want miss at the 88.50 area with targets in between 98 and 100.
The FX advice on how to trade the majors continue next with the AUDUSD.
The Aussie could be either in a wave A of wave 2 of wave C, or in a wave C of wave X of wave B. In any case the likelihood of having downward corrections followed by a move up seems high. One the currency makes the third move up, there is a potential for a good return to risk swing trade with -0.97-0.98 as a likely target area.
The FX advice on how to trade the majors continue next with the EURJPY.
The EJ could make one or 2 more corrections down before continuing the uptrend. The uptrend will most likely happen at the same time as the UJ upside (barring any huge falls on eurusd). There are 2 likely candidates for the uptrend continuation; either at the -272 target and 382 retracement at +/- 117 or at the -618 target and at the 500 fib retrace at 114-114.50 area.
Of course we will keep you updated on the development of this analysis as time and price move on. The above mentioned analysis might need to change depending on price action developments in the upcoming days. But this is my expectation at the moment.
Thanks for sharing this vital piece of information with all of your trading buddies!
I wish you Good Trading!
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