Mid-Week Analysis of the high probability opportunities for this week in Forex, Indices & Commodities.
Click on the video to watch the full breakdown
If you want to test your trading psychology and how patient you are, trade in January.
I say that half-jokingly, but in truth, this is not a month for rushing trades. You need the skill of knowing how to wait. Prepare to be tested.
Here’s our update of opportunities for the week:
- EUR/USD – uncertain
- CAD/JPY – awaiting confirmation of new trend
- EUR/JPY – awaiting confirmation of new trend
- EUR/CAD – unclear so far
- WTI Crude Oil – unclear
- AUD/NZD – possible reversal and entry
- Gold – unclear
As expected, all markets are slow movers – we’re just slowly creeping into the new year. Tomorrow may induce volatility.
This Looks Interesting
The only one of real interest so far is AUD/NZD. It lines up on both the higher and lower timeframes. Price action is indicating a reversal, which we can wait, and then let the candles form to show a continuation to the Buy side.
This is the pattern we’re looking at.
We are currently at Candle 3. Should the day close bullish today, it’s a reversal confirmation.
On the H4 too, we wait for a break of previous structural high (preferably a strong break), then look to enter at a cheaper price. It’s the usual routine: Break, Pullback, Continuation…
What Will CPI Do?
Dollar is at the moment unclear and usually CPI creates some volatility. If it does, tomorrow’s H4 and D1 candles could leave some clues, making things clearer for Friday and next week. Beware, because with this much ranging markets we’re having, we could see a spike in movement in both directions.
Don’t be surprised if we don’t have any trade entries this week…
Written by: Dima Mihailovich, Technical Analyst for Forex Prop News
Contact and follow Dima on Twitter: @dimafpn
Image by Photo by Tima Miroshnichenko, on Pexels
(Please note: All comments made in this video and article are not trading or investment advice and are for education purposes only. You are responsible for your own decisions and the risk that goes with it.)