In this technical analysis weekly report, we will take a look at some short term value zones and trading setups on the following markets:
EURUSD 1H & 5m Charts;
GBPUSD 4H & 5m Charts
EURUSD 1H Chart
This currency pair has been consolidating in a tight range between 1.1290 - 1.1190 in the past few days. The breakout on either side will provide more momentum and cleaner trades.
Possible trading scenario for short term is to position on the edges accordingly. For intraday scalps, go to the next 5 minute chart where we will identify yesterday's and today's value zones.
EURUSD 5 Minute Chart
Current value area levels built today are as follows:
VAL (Value Area Low) = 1.1230;
VAH (Value Area High) = 1.1270;
VWAP (Point of Control) = 1.1250.
How can you trade the above levels?
GBPUSD 4H Chart
The Cable broke below a key monthly support today at 1.2330 which leaves the short-term pattern prone to further downside, however, we have one more day to go until the end of the month + there is going to be GDP data tomorrow early morning UK time.
Key support = 1.2255 (Fib. 100% extension).
Key resistance = 1.12330 (Monthly point).
How can we trade the intraday charts? Take a look at the 5 minute chart.
GBPUSD 5 Minute Chart
Current value area levels built today are as follows:
VAL (Value Area Low) = 1.2270;
VAH (Value Area High) = 1.2365
VWAP (Point of Control) = 1.2330
How can you trade the above levels?
Scenario #1: Buy scalp at VAL (1.2270) with tight stop 1.2255 and target VWAP at 1.2330 (in line with the 1H chart);
Scenario #2: Wait for a bounce to VWAP and look for sellers' confirmation to short 1.2330 (As long as price fails to cross and hold above 1.2330 tomorrow, GBPUSD may find selling pressure once more and break below key support 1.2255. NOTE: Any strong candle above 1.2330 will expose 1.2365 & 1.2420, respectively.
The above is only a preliminary analysis on the market and, if need be, we always change according to price action and incoming market information. Most of the times, market swings around the levels mentioned above, however, a trader should always practice a flexible mind and adjust to changing trading environment.
If you want a trading plan on other markets then don't hesitate to contact us.
Until the next time, trade well!
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