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Supportandresistancezones

USDCAD sellers need validation from 1.3670 and Canada inflation USDCAD fades the week-start recovery as market players await Canada inflation data on early Tuesday. In doing so, the Loonie pair defends the previous week’s U-turn from the 100-SMA while retreating towards a two-month-old rising support line. Adding strength to the bearish bias are the downbeat MACD signals and the mostly steady RSI (14). However, the quote’s further downside needs a clear downside break of the aforementioned trend line support, close to 1.3670 by the press time, as well as upbeat prints of the Canada Consumer Price Index (CPI) and the Bank of Canada (BoC) CPI for October. That said, the pair’s sustained downside past 1.3670, backed by strong Canada inflation, could quickly drag prices to the 50% and 61.8% Fibonacci ratios of the pair’s September-November upside, respectively near 1.3640 and 1.3570. Meanwhile, USDCAD buyers need to cross the 100-SMA level of 1.3770 and must get support from the Canada inflation to retake control. Even so, a downward-sloping resistance line from early November, close to 1.3815 at the latest, will act as an extra filter toward the north. Following that, the pair’s run-up toward the monthly high of around 1.3890 and then to the 1.4000 psychological magnet can’t be ruled out. Overall, USDCAD is likely to remain on the bear’s radar but needs strong Canada inflation data to drop further.
by MTradingGlobal
EURUSD hovers around key resistance, focus on ECB’s LagardeEURUSD appears all-set for the weekly gain even if a three-month-old descending resistance line and the overbought RSI (14) restrict the pair’s immediate upside. It’s worth noting that the bullish MACD signals and the quote’s successful trading above the key Fibonacci retracement ratios, as well as the SMAs, keep the buyers hopeful. That said, the 61.8% and 50% Fibonacci retracement levels of the Euro pair’s August-October downside, respectively near 1.0830 and 1.0755, initially test the bears before directing them toward the 50-SMA 1.0745. It’s worth noting that the 200-SMA level of around 1.0620 acts as the final defense of the buyers, a break of which will make the pair vulnerable to a drop to the previous monthly low of 1.0450. Alternatively, a downward-sloping resistance line from mid-August, around 1.0885-90, appears a tough nut to crack for the EURUSD bulls as they await European Central Bank (ECB) President Christine Lagarde’s speech. Following that, tops marked on August 30 and 15, close to 1.0945 and 1.0955, will act as additional upside filters before directing the Euro bears toward the 1.1000 round figure and then to the August month’s top of near 1.1065. In a case where the major currency pair remains firmer past 1.1065, the odds of witnessing a run-up toward the yearly high of near 1.1275, marked in July, can’t be ruled out. Overall, EURUSD remains on the bull’s radar even if the upside room appears limited ahead of a speech from ECB’s Lagarde. That said, Lagarde is likely to defend the Euro bulls by being hawkish but a reference to the economic hardships and recently easy inflation numbers might allow the pair traders to consolidate weekly gains.
by MTradingGlobal
USDJPY bulls eye another battle with 4.5-month-old resistanceUSDJPY rises for the sixth consecutive day while poking the yearly high marked in October, mildly bid near 151.70 during early Monday. In doing so, the Yen pair justifies an upbeat RSI (14) line while signaling the fourth attack to cross an upward-sloping resistance line stretched from June 30, around 152.50 by the press time. It’s worth noting that the previous yearly peak of near 152.00 guards the quote’s immediate upside. That said, the pair’s successful trading beyond 152.50 enables buyers to aim for the June 1990 high of 155.80. Meanwhile, the 150.00 round figure and the 50-day SMA surrounding 149.20 restrict the USDJPY pair’s short-term downside. Following that, the 100-day SMA and an upward-sloping trend line from late March, respectively near 146.20 and 145.30, will act as the final defense of the Yen pair buyers. In a case where the bears dominate past 145.30, June’s high of near 145.00 can test the downside moves targeting May’s high near 141.00 and then toward the 140.00 psychological magnet. Overall, the USDJPY pair remains in the bullish trend but the upside room appears limited as the multi-month-old rising trend line joins nearly overbought RSI conditions to suggest one more retreat of the buyers.
by MTradingGlobal
Learn Support Bounce- For Swing TradingSimply speaking a support is a zone where demand overcomes supply. There are more buy orders than the sell orders at this level, which could force the bids to go higher and hence the stock can rally. I would like to discuss one of the efficient ways to trade support levels. This is not the only way and may not be the perfect one but still with good success rate. There are a few simple points that needs to be followed. 🚀Step 1 There should be a support level from where the stock bounced significantly. Draw a horizontal line from the lowest point of the support. 🚀Step 2 Let the price pullback to this support zone and create a green candle. It could be a pin bar with long wick at the bottom or a full green candle that closes above support. The setup may develop either at or near the support OR after the price breaks through the support and then fakes the break. Both ways we need a green candle above the support zone. 🚀Step 3 Buy few ticks above the high of the pin bar or full bar with stop loss few ticks below these candles. Buying at the close of those bullish candles is another method to further reduce the risk (SL) but the first method will keep you from some awkward positions. 🚀Step 4 Here we are not looking for reversals. We are looking for 50% target of the previous down wave. ⚡Tip1: Now we know the target and stop loss, before entering the trade please confirm that reward is 2 times, or more than the risk involved. Ex if SL is 10 points, then target should be at least 20 points. So, the down wave must be more than 40 points. ⚡Tip2: Once trade starts moving in your direction, keep trailing to bring your stop to breakeven or lock some profit on partial position if your like. I will post some examples in the update section. One is right there on the SBI chart shown above. Two support zones and 3 buying opportunities that worked. Keep boosting for more educational ideas in future. Disclaimer: Examples shown in the idea are not an investment or trading advice. Apply your due diligence and backtest the strategy for good results.
NSE:SBINEducation
by Bravetotrade
3
EURUSD edges higher within bear flag, central bankers eyedEURUSD consolidates the previous losses within a six-week-old rising channel, forming part of a multi-day-long bearish flag chart formation, currently between 1.0760 and 1.0590. It’s worth noting that the firmer RSI (14) line, not overbought, joins the bullish MACD signals to favor the Euro pair’s further recovery towards the 1.0760. However, a convergence of the 100-SMA and the 200-SMA, around 1.0800, appears a tough nut to crack for the bulls afterward. In a case where the quote remains firmer past 1.0800, the bearish bets will be off the table and will enable the buyers to challenge the late August swing high of around 1.0950. Meanwhile, the 50-SMA level of around 1.0620 acts as an immediate downside support to watch during the EURUSD pair’s fresh downside. Following that, the stated bearish flag’s bottom line of near 1.0590 will be crucial as a break of which will theoretically confirm the pair’s gradual fall toward the sub-1.000 region. However, the yearly low marked in October around 1.0445 and the August 2022 peak of around 1.0380 could test the Euro bears on their way. Overall, the EURUSD is likely to remain in the recovery mode but the upside room appears limited. That said, today’s speech from the European Central Bank (ECB) President Christine Lagarde and Fed Chair Jerome Powell will be crucial to watch for clear directions.
by MTradingGlobal
AUDUSD extends pullback from 100-SMA despite RBA rate hikeAUDUSD drops nearly 50 pips even after the Reserve Bank of Australia (RBA) matches expectations of announcing a 0.25% rate hike. In doing so, the Aussie pair extends the previous day’s pullback from the 100-day SMA while poking a five-month-old horizontal support. It’s worth noting that the RSI (14) line’s retreat from the nearly overbought territory also suggests the quote’s further declines past the multi-month-old horizontal support surrounding 0.6460. In that case, the 50-SMA support of 0.6390 will act as the final defense of the buyers before dragging the pair toward a one-month-old horizontal support zone nearing 0.6290 and then to the yearly bottom of 0.6270. On the contrary, the AUDUSD’s corrective bounce off the immediate horizontal support of near 0.6460 will need validation from the 100-SMA level of 0.6500 to convince the bulls. Even so, the monthly high of around 0.6525 and June’s low close to 0.6600 will challenge the Aussie pair’s upside. In a case where the quote remains firmer past 0.6600, a nine-month-old falling resistance line near the 0.6700 round figure and the late July swing high of around 0.6740 will be on the buyer’s radar. Overall, the AUDUSD pair’s latest decline shows the market’s lack of belief in the RBA’s hawkish move, which in turn joins the bearish signals to keep the sellers hopeful.
by MTradingGlobal
Rising wedge confirmation favors USDCAD bears at 13-day lowUSDCAD posted the biggest weekly loss in more than seven months amid broad-based US Dollar weakness and the upbeat performance of WTI crude oil, which is Canada’s biggest export earner. In doing so, the Loonie pair also confirmed a two-month-old rising wedge bearish chart formation. Also strengthening the downside bias are bearish MACD signals and an absence of oversold RSI. With this, the quote is likely to extend the latest south-run towards the theoretical target of rising wedge confirmation, i.e. 1.3220. That said, the 50-SMA restricts the immediate downside of the pair to around 1.3630 while a convergence of the 100-SMA and 50% Fibonacci retracement of the July-November upside, near 1.3490, will act as an extra filter toward the south. Meanwhile, the USDCAD pair’s corrective bounce appears less impressive unless it stays below the aforementioned wedge’s bottom line, close to 1.3760 by the press time. Even if the Loonie pair crosses the 1.3760 immediate upside hurdle, the wedge’s top line and the recent peak, respectively near 1.3890 and 1.3900, should check the bulls before giving them control. Additionally, the previous yearly top surrounding 1.3980 and 1.4000 psychological magnet will also prod the quote’s upside. Overall, the USDCAD pair is likely to remain bearish during the trading week comprising lesser data/events.
by MTradingGlobal