Note On Charts: It’s imperative to your trading success that you are trading with a broker that offers ‘New York Close Charts‘, (a true 5 day chart that aligns with the New York Close).
You Can Download a Free 30-day Trial of the Broker & Charting Platform We Use HERE.
Chart Commentary Disclaimer: Nial’s views on the Charts is not advice or a recommendation to trade or invest, it is educational and general information only. Dot blindly buy and sell the markets/products discussed in this newsletter, do your own research and be aware of the risks and rewards.
Weekly Forex Trade Ideas & Chart Analysis by Nial Fuller – October 1st to 5th, 2018
TECHNICAL PRICE ACTION ANALYSIS:
All charts illustrated are daily chart time-frames unless marked otherwise.
EURUSD – All depends on the 1.1535 support level this week.
Technical Summary: Several weeks ago, price recently broke down below 1.1535 but quickly reversed higher, triggering a massive short covering rally. This has created a massive bullish fakey pattern + pin bar on the monthly chart, a very bullish sign.
The market has sold off from the pin bar + inside bar combo pattern that formed last Monday right at major resistance at 1.1820. We continue to favour buying weakness whilst price is firmly above 1.1535 support, targeting a move into 1.1750 to 1.1820. A break and close atop 1.1820 would be significant and open the door to a large move up.
Potential Trade Idea: Consider buying on any price weakness whilst price is above 1.1535 support, or wait for a price action buy signal to confirm an entry.
USDJPY – Buying on any weakness whilst above the 112.05 support level this week.
Technical Summary: Price has formed a solid base at 110.75 and has now pushed up and reclaimed both the 112.05 and 113.18 levels. The close atop the 113.18 major resistance level last week is a significant move that has activated a longer term bullish trend. We remain bullish above the 110.75 – 112.05 support area and continue to favour buying on the dips.
Potential Trade Idea: Consider buying on any short term weakness whilst price remains above the 110.75 to 112.05 major support level, targeting move back to 113.18 and beyond.
AUDUSD – Sell on any strength whilst the 0.7470 resistance level contains prices.
Technical Summary: Long term down trend remains in tact with nearby resistance at 0.7470 and 0.7320. We expect the market to be contained under the 0.7470 major resistance.
A bearish long tailed pin bar reversal forms below 0.7320 resistance last week which has taken prices lower again. We continue favour selling on any strength whilst prices remain below the high of the pin bars upper tail.
Potential Trade Idea: Consider selling short on any strength whilst price is contained below the 0.7320 to 0.7470 major resistance area or wait for another price action sell signal on 4 hour or daily chart to confirm an entry.
GOLD (Spot Gold) – Inside bar structure breaks down, opens door to $1150 target.
Technical Summary: Down trend remains in tact with nearby resistance at $1205 – $1215 zone and $1237 level.
Price remains contained under $1205 to $1215, and we can see a bearish rejection of this area over the last few weeks. Whilst below this resistance, there is downside risk back towards $1150-60 area.
The inside bar pattern discussed previously have now broken down, activating lower prices and a potential test of $1150-60 support area. Previous comments in members area: “Multiple inside bars have formed on daily chart, if this inside bar structure breaks down, expect a significant move down again, in line with the bearish trend.”
Potential Trade Idea: Consider selling short whilst price is below the $1215 resistance area, targeting a move back into $1150-60 area. A move and close above $1215 voids any shorts.
CRUDE OIL (WTI Futures) – Buying on any weakness whilst the $70.30-$71.30 support area holds.
Technical Summary: Price has broken out strongly last week, closing above the $71.30 major resistance level. This activates a long term move targeting the resistance at $74.93.
Last week we noted multiple inside bar pattern on daily chart and suggested an upside break out was possible. On Friday we saw the market break higher from this inside bar structure aggressively. We continue to favour buying on price dips whilst the support range at $70.30 to $71.30 holds.
Potential Trade Idea: Consider buying on any price weakness around the $70.30 to $71.30 support range, or wait for a price action buy signal above this support area on the daily time frame. Targeting a move into $74.93 and beyond.
WANT MORE TRADE IDEAS ? – Our Members Get Daily Trade Ideas On 10 Markets Every Morning – Members of Nial Fuller’s trading education courses get access to the members daily trade setups newsletter. You will get potential trade ideas and detailed chart analysis on Currency Pairs, Commodities, Stock Indices and more, every trading day. For more info visit the Trading Course Membership Page Here.
Note: – Download a Free 30-day Trial of the Broker & Charting Platform We Use HERE.
Leave A Comment Below