USD/JPY has reached a major resistance line at 107.74. It will therefore do 2 things. Either break the resistance line or respect it by coming down to the previous support line that has just formed at 106.73 or break it to reach 108.59.
Counter trend traders are looking to sell since that line has acted as support a number of times. However, trend traders might observe the actions of price on a lower timeframe to decide on a long or do nothing.
At michaframp Trading, we will just observe the action around that area to decide what to do. We are currently in a long trade. We might look to close the trade if price proves to fall. But we might add on another long position if price proves to have a strong momentum upward. In all, it can be seen that price has formed a heads and shoulder pattern meaning there is a high probability of price continuing up. Also, price has broken the previous high and the previous downtrend line, signifying a trend upward. In all, we respect the market and would look to observe what it wants to do first.
GBP/USD has reached a major support line. You can see that this move down for the recent week had a lot of momentum. The bears are very much strong looking at the length and body of the bearish candles.
Now, price is likely to do 2 things. Move back to touch the most recent up-trend line that has been broken or continue down to the next support at 1.3790.
michaframp Trading is not in any trade at the moment. We will however look at the movement of price within the week to decide which side to take or do nothing.
NZD/USD has reached a major support line at 0.7205. You can see that this move down for the recent week had a lot of momentum. The bears are very much strong looking at the length and body of the bearish candles.
Now, price is likely to do 2 things. Move back to touch the most recent broken up-trend line or the recent resistance line at 0.7290. Price might continue down to the lowest point this year at 0.7152.
michaframp Trading is in a long trade (1hr TF) at the moment. We will however look at the movement of price within the week to decide on keeping the trade or closing it.
EUR/USD price is likely to do 2 things at this point. It can be seen that it made an act to move to the recent support line but retraced a bit. Now it can move back to touch the most recent broken down-trend line or continue down to the recent support line at 1.2227.
michaframp Trading is not in any trade on this pair at the moment. We will however look at the movement of price within the week to decide on going long or short.
USD/CAD is in a strong uptrend after respecting the support level at 1.2580. It is currently moving towards the closest resistance at 1.2817. Price might rise up to that level and continue up to 1.2914 or might fall below 1.2720.
michaframp Trading is in a long trade on this pair. Our target is just a few pips to being hit. We will decide what to do next after price does what it ought to do (move) after market opens.
AUD/USD has also come down to retest support at 0.7647 and might move back up to retest the trend line on the resistance line at 0.7766 or might continue in its downtrend towards 0.7556.
michaframp Trading is not in any trade on this pair at the moment. We would look to see what to do after market open. However, price is likely to stall at the support level for a while before having a specific direction. This is a perfect time for advanced pattern traders.
USD/CHF has been in an uptrend for some time now. It can be seen that the upward movement has been very strong in the recent week.
Price is currently at a resistance level at 0.9742. It is highly possible that price might give a bit of a retracement before continuing its uptrend. However, the market does what it always wants to do. Therefore, price might continue on its uptrend and break the resistance line up.
We predicted this strong uptrend when price was at 0.9226.
michaframp Trading is not in any trade at the moment. We will however observe price action to determine what to do.
All these analyses are the personal views of michaframp Trading and should never be interpreted as an invitation to trade or open positions based on this analysis. Trading the forex markets is a risky business and one can lose all or part of his/her investment. You are always therefore advised never to trade with money you cannot afford to lose, and always seek for professional advice before embarking on any investment.