GBPJPY: ABCD after Reversal on HarmonicJust a simple ABCD pullback after GBPJPY fell on a harmonic pattern.
Sell now or between 139.4 - 140.0
Safest SL at point D of harmonic at 140.7.
Target 137.9 and 136.0
Dlifestyletrader
GBPUSD Resisted at 3-Year Supply ZoneGBPUSD has been resisted at a 3-year supply zone after attempting to break out. We could expect GBPUSD to pullback first, before continuing it's uptrend, first point of resistance being previous resistance turned supply. Should GBPUSD be able to break this support level, we could look to buy GBPUSD again at current 7-month rising trendline
GBPUSD Strong Resistance ZoneGBPUSD has climbed to its previous high forming a double top, which coincides with an extremely long term falling trendline and a 2 year supply zone. This is definitely an area of interest with strong resistance, thus we could look to continue selling GBPUSD at least back to the support of current rising trendline.
This week, await a pullback should current downtrend persist to continue selling GBPUSD.
USDCAD Retesting Previous LowUSDCAD has started a third wave of downtrend after retesting a support turned resistance zone and is currently retesting previous low of the second wave of downtrend.
Should price be able to break below this level of support, there would be more downside available for USDCAD.
This week, await a breakout, then continue selling USDCAD when it pulls back. Conversely, if price gets supported at this level, we could look to sell USDCAD again if it retests the same supply zone.
GBPUSD Approaching Major TrendlineGBPUSD is soon approaching a long-term trendline, which coincides with a 3 year supply zone. As price approaches this level, it would definitely be strongly resisted.
In addition, the current price is the top of a 3 year range, thus we could start looking to sell GBPUSD. Await a retest on the previous high, or wait for a rebound when price breaks the current bullish structure.
Bullish Bat Forming Near 29000Bullish bat forming.
Buy the dip towards 29000
Target 295000, 30000.
SL just below point X.
USDCAD Failed to Sustain UptrendUSDCAD has been steadily falling this week after retesting previous breakout point at 1.3333, largely due to Dollar weakness. With the BoC announcing a reduction in bond purchases, we could expect the CAD to continue appreciating.
This week, price is currently hovering at a strong demand zone, which coincides with the previous low of downtrend. Await a pullback to a resistant point, and we could continue selling USDCAD should there be clear signs of resistance.
Dollar Resumed Bearish TrendThe dollar fell with conviction last week and broke out of a symmetrical triangle.
This marked the end of a 4th corrective wave and the 5th motive wave has just begun.
With the election coming to a close, the dollar is set to fall with some major uncertainties off the table, especially since the winner is Biden.
Wait for pullback and sell the dollar.
Gold for Cash Amid PandemicAfter failing to break above past historical high 1921, the gold fell and ranged, and eventually broke out of a 1-month rising channel.
The gold continued to find support at 1894 but failed to gain any bullish momentum.
It finally gave way to a plunge as central banks started to sell their gold reserve to support their economy against the second wave of the pandemic.
These are enough factors to expect the gold to dip lower since countries need money now more than ever and the gold is not at a satisfactory discount yet.
We expect the gold to break new low dip below 1800 this month.
Dow Jones: Is this the beginning of a 2nd SELL-OFF? Cont'd2nd wave of coronavirus has become a factor in Europe.
Central banks are selling gold for the first time in more than a decade to keep their economy afloat.
Dow Jones had the biggest weekly drop in 7-months after multiple breakouts such as 1) the 5-month rising trendline, 2) the neckline of a double top and 3) created a lower low in 7-month.
With all the above factors, we have a case to expect the 2nd wave of the selloff in the stock market which probably has begun.
The strategy to sell is simple:
1. Don't be a fortune teller and try to time the market and trade with tight stop loss.
2. Make sure your trade does survive before the price pulls all the way back to the double top at 29200.
GBPUSD Done with PullbackDue to the uncertainty over the U.S election, demand for dollar continued to rise against its major peers.
While the brexit talk was delayed further, uncertainty is almost certain to build up again and thus pound will suffer.
The major bullish structure which was supported by a 7-month rising trendline was broken last month, pointing to an end of a bullish trend.
The market has pulled back from September's loss throughout October which formed a rising channel was seen broken below today.
As a result, GBPUSD is very likely to keep falling for the rest of the week and right now is a good price to sell as it has pulled back to 618 fibo level in the H1 timeframe.
If the price continues to pull back, we can still sell again around 1.3030.
USDJPY reversed at HnS necklineUSDJPY has pulled back from an HnS and found resistance at the neckline.
It has completed at least 2 bullish waves which have also taken 3 trading days and thus USDJPY may resume falling soon.
Traders may consider selling at the current price but keep in mind that the market may pull back a little further, at the most at 105.20.
EURUSD Facing Pressure at Range TopEURUSD has rebounded and retraced from a 1-month low just above 1.16 for the entire October and has completed 2 bullish waves by now.
As the US election draws closer, uncertainty continues to brew, causing risk sentiment to rise and boost demand for safe-haven assets such as the dollar.
Besides, the ECB conference will be up this week and chances are the ECB might take a dovish stance if they are ready to bring interest rate deeper into the negative territory.
Otherwise, the market has retraced significantly from the previous bearish trend and is definitely a decent price to attempt selling EURUSD.
Can USDCAD's Support Hold?USDCAD has retraced back to the breakout point of it's 6-month downward trendline, back to a strong support zone, which coincides with the 78.6% level retracement.
With oil prices hovering below $40 after breaking below key channel, and the Canadian economy being heavily reliant on Oil prices, the effects should be seen in Canada's currency.
This week, should the current support hold, we could look to buy USDCAD again, however, should price break current support, next level of support could be seen at the previous low at 1.300.
AUDJPY to Resume DownsideAUDJPY was held above 75 since the end of September but finally submerged below last week.
The market has pulled back to 75 and it faced rejection early in the Asia market together with an inside bar reversal pattern and a falling trendline.
Look to sell AUDJPY now with SL just above 75 or 75.3 for conservative traders. The primary target will be 72.90.
*AUD was the weakest and JPY was the strongest among other major peers last week.
USDJPY to Range before Further DownsideUSDJPY fell last week after rejection from a 3-month falling trendline but found support just above 105.
The yen has gained across all major peers amid growing uncertainties due to the pandemic and political turmoil in the US and Eurozone such as the US election and the Brexit talk.
However, the dollar rose too on safe-haven demand which therefore causing USDJPY to stuck in a range.
However, the price has reflected that the yen will eventually strengthen against the dollar ever since the pandemic broke out.
We expect the market to rebound a little higher towards the 105.6 - 105.8 region before it provides more downside movement.
Gold's Demand ReturnsThe gold has shown a clear sign of a bullish reversal for the first time in nearly 2 months.
The gold broke above a near 2-month falling trendline which started forming since the gold peaked at a new historical high of 2075.
However, we are not expecting huge and fast buying of the gold and we do expect the price to range upwards through October.
In general, the gold market has provided a pretty satisfactory discount and buyers will inevitably start to pile up.
Wait for the price to pull back and observe the price action to find a good entry point and as of now, 1916 looks like a good price to buy.
USDCAD More Room for DownsideUSDCAD was unable to keep the bearish momentum after breaking above a significant resistance level. Price came back to the trendline formed after the initial break out of the falling channel, but could not find support either.
The last 3 days of this week formed 3 very bearish candles, even breaking through previous demand zone, providing USDCAD with more downside.
This week, we could look to continue selling USDCAD to it's previous low, waiting for small retracements too add positions.
EURUSD Ready to Resume Bull RunEURUSD is probably ready for a whole new wave of a bullish run after gaining stronger ground from last week.
The market has broken out from a retracement channel and the price has also resurfaced above all moving averages, as well as an important pivoting level at 1.1750.
The MACD is also showing a returning bull and the line is about to cross above level zero which indicates a sustainable bullish trend.
This week, we expect EURUSD to climb further and traders may wait for a pullback towards 1.1790 to long.
Dollar Resumed Bearish after 3 MonthsThe dollar broke away from a rising structure after breaking below a 1-month rising channel and a demand zone around 93.6.
The MACD is also about to cross below level zero which indicates a sustainable bearish trend to follow.
The market sentiment seemed to have turned risk-on again in anticipation of the fresh stimulus package.
It has also taken the dollar a little more than 3 months of retracement and consolidation since the completion of a previous bearish trend to once again resume depreciation.
This week, we expect the dollar to continue weakening towards 92 and traders may wait for a pullback towards 93.38 to sell the dollar.
USDCAD Newly Formed Trendline.After USDCAD broke out of a 3 month channel, price has been slowly appreciating.
USDCAD has mainly been pulling back this week after a second wave of appreciation.
Price has came back down and found support on newly formed trendline on Friday.
Next week, should this support on trendline hold, we could look to continue buying USDCAD back to next resistance level at previous head and shoulder pattern.
GBPUSD Continued to form Lower Highs and LowsSince GBPUSD broke below a 6-month rising trendline, the price fell into a range.
However, the range was somewhat a falling channel where the market just kept trading lower with lower highs and lows.
As the presidential election began, and especially right after the first presidential debate between Trump and Biden, the market is feeling more uncertain of the outcome and thus risk sentiment picks up.
With risk sentiment climbing, the dollar started to regain strength and that essentially means that risk-on currency such as the pound will depreciate further.
And not forgetting that the UK is still facing a lot of uncertainty with its Brexit deal.
There's simply too little reason for pound to stay strong.
USDCAD More Room for Upside.USDCAD continued its gains this week following a break from a downward channel early September.
Price has managed to break and close above key resistance area, signifying that there are more room for appreciation.
We can continue the bullish stance on USDCAD till next key resistance at neckline of previous HnS pattern.
Upon market opening, await for signs of retest on support area for long opportunities.
