Now we see the formation of a potential bottom.
Other factors, descending trend line with multiple touches. If we see a re test of the highlighted lower zone and another touch of the trend line then i am looking for a push to the upside. However with the corona virus and the recent news of a lockdown we may see violent behaviour across all pound pairs. Be careful...
1.Breakout of descending trend line which shows potential bullish movement
2. If we get a retest of the key price area highlighted another confluence
3. 61.8 fib level has been plotted so if we see rejection off this level that will be the final indication for me to take this trade
NOTE - Coronavirus is causing mayhem in the markets...
USDJPY 30 min. Major and minor trendline. Break of minor trendline and re test of key area also matching up with the 61.8 fib level. Looking for a move downwards to test the major trend line again. Okay risk reward with 1:2.
I like this set up a lot but corona virus scares could whip us out. Stay safe 1% risk max.
On market open Dow jones was trading around the 18000 level. It seems the coronavirus is really taking its effect. If we can see a drop into the 15000 level where the lows of 2015 are this will have erased 5 years of growth in simply weeks. Crazy movement we are seeing the past few weeks. If anyone is not familiar with dow jones it is an index containing 30 stock...
GBPUSD Channel breakout and retest
1. Break of descending trendline and retest of key area.
2. wait for rejection of 61.8 fib level on lower timeframes before entering
COVID 19 causing choppy movements so be careful with this one. Great risk reward.
Just a little analysis on key levels of GBPAUD showing weekly and monthly key levels.
Rules of Key levels (support and resistance)
1. Not just one price line it is a area of price.
2. When looking for a reversal or bounce off key level use 4hr and daily time frames to indicate reversal signs
3. Key levels are valid for years and very accurate if plotted correctly.
Lovely little set up here. GBPJPY approaching a double bottom set up and a key buy zone historically.
Confluences for this trade
1. Need to see price reach same area as previous bottom. If not i will not take the trade. Once reached look for continues rejection probably on lower time frames (15 min and 30 min).
2. This pair has dropped a lot recently so normally...
Price for EURAUD is currently reaching a key level on the weekly time frame. We will look to see if price gets rejected at this level or if it breaks and becomes a new support zone. Right now there are two ways this pair can go highlighted in the picture.
There are no confluences yet as i am not sure if i will be taking a long or short position on this trade....