DXY – Multiple Scenarios (1) Short
Last week with the DXY we din't quite see the pullback we were looking for in order to get involved on the longs. we highlighted last week that the market can continue to trickle higher through multiple resistance bands without see a substantial pullback – depending on how you draw your pattern, there was an argument that the 3 touch structure (pattern) had already developed and therefore did not need to come to the downside once more.
Next week we're looking at two areas for the short and 1 are for the long.
If the market opens up, let's keep our eyes on these two regions in order to get involved short. There are two areas I'm interested in, the first is within the 93.400 region and the second is in the 93.600 region. Both these area have solid OBs to target so we just need to see the correct LTF development in order to get involved – probable vs possible. I'll be happy to get involved in some $ moves within both areas.
DXY – Multiple Scenarios (2) Long
Scenario 2 on the DXY is that we see the market open down.
This is very possible as we have already grabbed the liquidity from highs from late August. If this were to happen then I would simply be looking for the right confirmation in order to get involved to go long. I have highlighted two regions where it is most probable to see rejection. Like with the short examples previously we would need to see the LTF confirmation in order to get involved.
GBPUSD – Long
GBPUSD is looking ripe for some upside next week. I'm seeing the most recent piece of price action as one larger correction before the continued push higher. In this example the lows from the 136.000 region completed a 3 touch structure which suggest mid to longer term we will see some more upside.
To get involved I would like to see price push down to the 1.37000 region, potentially below the structure we have drawn out. This would grab liquidity and get people caught on the wrong side of the market. We will need to see LTF confirmation here to get involved.
EURGBP – Short and Long
EURGBP was a lovely short last week, a few members of the team managed to catch this which is great to see.
Next week I think we can trade both side of the market. At the moment price is pushing to the upside in a very corrective manor. We don't have too much conviction and price is range bound within and ascending channel. For this reason I think it is quite probable that we see some short term downside, at least to grab liquidity from last weeks buyers.
From this we can assess whether or not to continue to hold the short or IF price action develops into the long around the 0.85000 region we can close the trade, flip our bias, wait for confirmation and get in the long.
GBPJPY – Short and Long
GBPJPY is one of my favourite setups heading into the new week although it does require some development in order to be ready.
If the market opens up I do think we can look to trade a short around the 152.200 region. There is a clear imbalance and orders within the market within this region that with the right development will provide all the right confluences to get involved in a short.
For the long – just above the 150.00 region we have a load of liquidity, there are equal lows around 150.400 that need to be spike. Once this happens I will be on high alert to get involved in the market. This would also complete the 3 touch structure of the pattern.
EURJPY – Long
As an alternative to GBPJPY I am also looking at EURJPY. Throughout the week I will be monitoring the relative strength of the two pairs (GBP and EUR) to see which one is the most probable to see rejections.
Technically this is very similar to GBPJPY, we expecting price to pop below the equal lows around the 128.600 region. This again, would get people caught on the wrong side of the market where we can look to enter. If we see the right confirmation within this region it seems a no brainer to look for longs. Im not too interested in the short here unless we see clear and obvious development which we do not have yet – for this I will keep you updated in Telegram.
USDCAD – Possible Long To Short
USDCAD was a move that we highlighted last week, and we did manage to bank a small profit. However we have continued to push to the upside now and clearly broken highs. Im now simply looking for price to retrace into our orders so we can take a long position into our bearish AOI. The sell has been something we have been waiting on for a very long time and Its only a matter of time now until we reach there. Lets see how we develop.
USDCHF – Possible Long To Short
USDCHF is a very similar move to USDCAD. Overall we are looking for the longer term short position from the 3rd touch of our ascending channel and daily order block. But first we may be able to capitalise on a short term long position into this area. We can see that liquidity has been swept from the lows and we broke structure to the upside impulsively. Its now just a simple case of waiting for price to pullback and mitigate the orders that where left behind. We don't necessarily need to pullback we could just continue to push up into our bearish orders from here so make sure you do bare that in mind.
EURUSD – Short To Long
From the higher timeframes (covered in market breakdown) this looks great for some upside longer term. However we could look to take a short term short position into our bullish orders. Looking on the lower timeframes here we can see a clear BOL. We have left behind imbalance and orders behind so I now need to see price pullback into this area in order to take a short position. My first target will be bullish orders but as I highlight in the video we could continue to fall through our bullish level so if we don't see confirmation when buying we will continue to hold our sell position.
GBPCAD – Possible Long To Short
GBPCAD is something we have been watching for quite some time now and were very close to our AOI. Scenario 1 (black pen) would be a simple trickle higher in the form of a pattern into our bearish orders. This would be a great area to focus on a short position. Scenario 2 (blue pen) accounts for a pullback into orders and imbalance. This is where we can potentially look to take a short term buy position up into our sell AOI. What we can see on the smaller timeframes is a sweep of the lows that grabbed liquidity before an impulsive push higher that broke structure. I will want to see price correctively pullback into this area in order to take the long.
CADJPY – Long
Last from us this week is CADJPY and this was also a move that was highlighted last week. We did highlight the short position but we weren't able to catch the entry so our focus is shifted back to the long. On the larger scale we can see a descending channel that created a push to the upside that broke our highs, im now looking for the market to pullback into orders that where left behind to mitigate them and push higher once more. It looks like were forming a smaller descending channel into our orders too which only adds strength to our idea. Lets see how we develop into this level.