June 6 – June 11 2021 – Updated
CADJPY – Basing at resistance is generally bullish. We did not get any upside and price is in a trading range.
CHFJPY – Price came right into our zone and a four hour trend line break entry leads to 67 pips upside.
EURJPY – Short lived bounce from our zone for 35
EURJPY – No trade
GBPJPY – Price ranged
USDCHF = Price continued downside
271 pips on the setups from last week. The EURUSD is a great example of one pattern completing and setting up another trade. Price broke to the upside and formed the right shoulder of a Head and Shoulder pattern. Early entry is on the breakdown of price off the shoulder and not the neckline.
Forex markets are still in wild price action which makes it a difficult time for daily chart swing traders. While setups may look bullish due to prior price action, failures of higher prices can sometimes setup reversals as in the EURUSD. Keep an eye out for them.
May 30 – June 4 – RESULTS UPDATED
AUDNZD – Price kept heading to the upside so no short trade.
EURUSD – Price based under the resistance zone which is bullish. 50 pip upside break. However, that move up set up a lower high which set up a head and shoulder type pattern. Breakdown of the right shoulder lead to 106 pips potential.
GBPUSD – We never saw the basing at highs as the week started with a failure test of highs. Price rocketed through resistance and reversed. That is weakness which led to 115 downside.
USDCHF – Flag never broke to the downside.
220 pips last week potential. Price structure in most currency pairs is not conducive to great trading. These setups are the pairs that aren’t too extended, moves are not already in progress, so there is still some opportunity.
If you desire, you can use these setup triggers to take trades on lower time frames. This means if the daily breaks to the downside, use the 1 hour chart to look for small ranges, bear flags, etc. Not my favorite way to trade Forex but can be done especially in the action we are currently seeing.