XAU/USD – Price reached daily swing 2 and support zone
Further to previous bearish dominant break, the yellow metal continued to drop and price is now at daily support zone and daily swing point 2. Although the selling momentum is strong, you are still advised to enter after getting more confirmation. We will now wait for a clear break of swing point 2 and short it after pullback and this will be a good trade to hold until TP2 area.
EUR/USD – Price reached daily swing point 2
The scenario of EUR/USD is pretty similar to XAU/USD. Although daily swing point 1 was broken, price is too low for a sell now as price is now near daily swing point 2. A clear break of daily swing point 2 will lead price back to previous support zone, else it would be an uptrend continuation as the preceding uptrend was strong.
GBP/USD – Break of daily swing 2, sell trend confirmed
Although the Sterling bounced higher on Thursday due to the Bank of England announcement, the price dropped afterwards as the selling momentum is still strong. Refer to our previous week analysis, we discussed that price is likely to drop when there is a clear break of daily swing 1. This week, we will still be continuing to look for sell but we would execute the trade after retracement for a better risk reward ratio.
GBP/JPY – Strong bearish engulfing on weekly chart
After few weeks of rallying up, GBP/JPY has finally showed some reversal signal. Last week, market closed with a strong bearish momentum down. Refer to the weekly chart, we can see that there was a strong bearish engulfing candle, breaking weekly swing point 1. Switching to daily chart, both swing points were broken and market has retraced and triggered our preset entry point. For those who missed the trade previously, you may enter after retracement in smaller time frame.
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