Weekly forex market price action analysis & trade ideas – Aug 5th to Aug 9th 2019.
USDCAD: DOWNWARD TREND CONTINUATION SIGNAL FORMS ON US DOLLAR CANADIAN DOLLAR PAIR
The US Dollar Canadian Dollar assumed a bearish bias in June after price failed to make a new high from the bounce at key support level 1.32379.
The current bearish bias remains valid beneath 1.32665 near term resistance. Traders may go short on the USD/CAD pair from the trend continuation signal we saw last Friday with potential reward up to 1.30210 and then possibly lower.
Trade Idea: Traders may find shorting entries at the break of the low of 20th June daily mother bar candle at 1.31501.
See chart below for reference;
EURUSD: EURO DOLLAR DOWNWARD TREND REMAINS INTACT
In the heat of the current global geopolitical and economic uncertainties, the US Dollar which is seen as a ‘risk-off’ currency continuous to strengthen over the Euro as the pair continuous to plunge intensely.
This presents continuous stream of trading opportunities for traders to profit from this unending down trend.
As trading activities picks up this week, traders may look to sell short the Euro Dollar pair as price retraces to mean levels using the 10 period EMA as reference on either the daily chart or H4 Chart.
A valid stop level for a short position on this pair could be above 1.11886 key resistance level.
See chart below for reference;
USDCHF: DOLLAR-SWISS FRANC – BEARISH STEAM REMAINS APPARENT
The current downward trend on the Dollar-Swiss franc pair presents many profitable trading opportunities for traders as the pair continues to make new lows.
Near term resistance can be found at 0.98762 and traders may zoom unto the H4 chart timeframe for shorting opportunities preferably within 0.98356 – 0.98762 near term resistance zone on the 4H chart.
See chart below for reference;
XAUUSD: SILVER SPOT ON AN UPWARD TREND
Spot Silver which traded downwards during the 1st and 2nd quarters of 2019 found support at $14.31 key support level during the end of May and then commenced an upward session that has been sustained throughout June and July.
The current general directional bias of this pair is clearly up. Which presents buying opportunities for traders to take Long positions making reference from the two bullish pin bars of August 1st and 2nd with an ideal stop below these two pin bars, preferably at $15.84.
See chart below for reference;
XAUUSD – SPOT GOLD MAINTAINS SOLID UPTREND
We have seen spot gold maintain a solid uptrend in the midst of the current global geopolitical and economic turbulence, signaling that investors prefer gold to the US Dollar as safe haven security.
This presents buying opportunities for traders to join the upward bandwagon we are seeing on spot gold. Traders may zoom unto an intraday timeframe such as the H4 chart, and look for retracements to the 10 period EMA to go long.
From the H4 chart, near term support can be found at 1431.31. Traders may mark this level and look for buying signals as price retraces to mean levels around this area.
See chart below for reference;
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About E.O. Essien
E.O Essien is a Chartered Financial Economist with accreditation from the Global Academy of Finance and Management (GAFM) and the Association of Certified Chartered Economist (ACCE). He is a Professional Forex Trader, Trainer and Coach who received his professional Trading Education from Nial Fullers’ Online Price Action Trading Course. Where he obtained the trading strategies and success secrets used by Millionaire Trader Nial Fuller and many prop firms who trade stocks, bonds, commodities, currencies etc.
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