Trading idea on major pairs: 7th November -11th November

11 months ago forexsimulation 0

EURUSD pair

There has been a strong bullish correction in the EURUSD pair in the last week after hitting a low at 1.08496.There has been a golden bearish crossover in the 100 and 200 days SMA in the daily chart of the EURUSD pair. Currently, the pair is testing the dynamic resistance level at 1.13378 where the 100 day SMA lies. The pair is most likely to test the critical resistance level at 1.11656 where the 200 day SMA lies. In the eyes of trained professional selling, this pair near the 200 days daily SMA with bearish price action confirmation signal will be best trading setup for the EURUSD pair. However, if the pair manages to breach the critical resistance level at 1.11656 level then the strong bearish sentiment for the pair would fade away to a certain extent. A valid break of the price above that level will bring strong bullish rally in the pair towards the next critical resistance level at 1.13595.This level is most likely to limit the bullish move of the pair since there a significant amount of resistance at that level. A clear bullish break of the price of that critical resistance level will target the key resistance level at 1.16160.Considering all the parameters the overall bias remains strongly bearish for the EURUSD pair in the upcoming week. Professional traders are cautiously waiting for the bearish price action confirmation signal near the key resistance level to sell this pair. The bearish crossover of the 100 and 200 days SMA is a very phenomenon yet traders prefers to trade this signal with price action confirmation signal for better accuracy. The first bearish target for the pair would be the critical support level at 1.08506.If the pair manages to breach that level then we will see a prolonged bearish move in the EURUSD pair in favor of the long-term bearish trend.

AUDUSD pair

The Aussie dollar is still trading within the triangle chart pattern formed on the daily chart. Near term resistance for the pair lies at 0.76950 level. This level is going to provide the significant amount of selling pressure to AUDUSD pair price as rejected this region several times in the past. Most importantly the sloping bearish trend line resistance on the daily chart also lies at the point. If the pair manages to breach that level then we will see a strong bullish move in the AUDUSD pair towards the next critical resistance level at 0.78306 level. A valid break of that level will bring strong bullish momentum in the market towards the next key resistance level at 0.8000 marks. On the contrary, if the critical resistance level at 0.76950 level holds then we will see an imminent drop in the price towards the triangle critical support level at 0.75769 level. A valid break of that level will bring further downward movement in the AUDUSD pair towards the next minor support level at 0.71540 level. This level is going to provide a temporary support to the Aussie dollar but ultimately the price is most likely to fall towards the key resistance level at 0.68250 level. This level is going to provide a significant amount of support to this pair and a valid break of that level will bring the long-term bearish trend into action. Considering all the technical parameters the Aussie dollar has not yet breached the triangle support level at 0.75769 not the resistance level at 0.76950.We will stay on the sideline until the pair manages to breach one of the critical trading zones. However, the market sentiment still remains slightly bearish since there has double rejection (bearish pin bar) in the weekly chart.

GBPUSD pair

After the Brexit event, the Great Britain Pound has suffered an extensive loss in the financial market. Last week the GBPUSD pair made an astounding recovery by breaking the critical resistance level at 1.23380 level. The pair was struggling heavily to breach this level and with a successful breach, fresh buying pressure has been created in the market. Professional traders are looking to buy this pair with minor retracement towards the first critical support level situated at 1.23380 level. But before entering long in the GBPUSD pair it is highly imperative to use bullish price action confirmation signal. The first bullish target for the pair would be the critical resistance level at 1.27932.This level is going to create smart scalping opportunity to the short time frame traders the pair is most likely to struggle at that critical resistance level. Due to the upcoming U.S presidential election, there is a strong possibility of a false spike in the GBPUSD pair in the upcoming week. If the pair tests the critical resistance level at 1.27932 then we are most likely to see a retest of the 100 days SMA in the daily chart. Considering all the parameters the overall bias remains strongly bullish for the GBPUSD pair in the upcoming week. However, traders are highly advised to use proper price action confirmation signal before they execute their long orders in the market. Those who are aggressive traders should use the smaller time frame so that they can use relatively smaller stop loss while trading this pair. In the eyes of trained professional buying, this pair at the current price level will be extremely risky since the price is most likely to retrace a bit towards the critical support level. So we will be waiting patiently to buy the deep for this pair.