GBPAUD SHORTER TERM OUTLOOK SKACAPITAL As explained in the linked idea, we are short on this pair. See descriptions on chart.
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GBPUSD Psychological Target SKACAPITAL our psychological target is on the upside of 1.6000 as outlined a few weeks ago. We have a reversal pattern (Rising wedge) with divergence which represents some uncertainty in the market. Once price has reached 1.6000 re analysis must be performed to distinguish if this is actually a three drive pattern. On the opening of the market price can pearce below the trend line.
EURJPY SKACAPITAL On the Weekly time frame we have a 61.8% retracement with lower high formation and oversold on the stochastic. As you could see on the chart price has breached and closed below the asymmetric triangle. On the opening of the market we can expect price to reach 138.800-139.000 or a straight continuation to the downside. our downside targets for this week are 137.000-136.800 then 136.000.
However, if price breaches and closes above the asymmetric triangle then bullish momentum would continue. As visualised on the graph a bullish harmonic pattern was formed the target has already been met but on the opening of the market that same level may be retested before continuation to the downside.
For Swing Traders safe stops are above 139.500-140.000. For Day traders, stop losses should be set accordingly.
EURUSD SKACAPITAL As outlined in the previous posts at the beginning of the week we outlined price would drop then continue it bullish momentum up to our psychological target 1.2000. We have a bullish harmonic pattern with oversold on the stochastic. Waiting for the bullish candlestick confirmation.
Safe stops would be below "X" and our first upside target being 1.12800-1.13000. At this level we would then re analyse to see if the bullish momentum would continue.
Possible Long or Short Trade Setting Up For GBP/USDThe British Pound advanced against the US Dollar as expected but a bearish Evening Star candlestick pattern hints a turn lower may now be ahead. Near-term support is at 1.5794, the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 1.5647. Alternatively, a turn above the 61.8% Fib at 1.5941 clears the way for a test of the 76.4% expansion at 1.6124.
We will be taking a short position with a break below 1.57800 with a stop of 1.59400, conversely we will be taking a long position with a break of 1.59500 with a stop of 1.57830.
GBPUSD SKACAPITALAnalysing the weekly and daily time frame we have price hovering and being rejected at key level (61.8% Retracement) However looking at the daily time frame we have divergence and oversold on the RSI. Key Confluence for downside target of 1.157500:
- 200 EMA acting as magnetic support
- Key structure level
- Key retracement level.
If price breaks below the trend line the next downside targets would be 1.5200 then lower. If price breaks above 1.6000 then the next target would be 1.6500.
For day traders on the opening of the market price may reach 1.6000 so careful when setting up the trade. If you are a swing trader stop losses should be above 1.6000.
GBPUSD SKACAPITAL Price on the weekly and monthly chart demonstrate price being at a key level (61.8%) retracement. That being said as seen on the daily time frame we have divergence with oversold on the RSI. On the opening of the market (for those day traders) price can reach 1.6000 then we may begin to see bearish PA. Our first downside target is in confluence with key structure, 200 EMA and key retracement. Target one being 1.55700. Once this level has been met we can expect a retracement or continuation to the upside. So if price does reach our target and retraces to 1.57500 further analysis must be conducted to understand if it is just a retracement or if the upward movement will continue. As explained on the chart if 1.6000 is breached our next target would be at the extension 1.618 Price level 1.6500.
If you are selling from current price stop losses should be places above 1.6000 for swing traders. If you are a day trader stop losses should be set accordingly.
EURJPY SKACAPITAL Have a bearish Crab formation with bearish candlesticks on the weekly time frame at key resistance. Our first downside target is 137.000. Once this target is met our next target would be 134.850 then 133.400. However, once each target is met PA confirmation is required to hold onto the positions.
We have lower highs which represent bearish momentum. For day traders the first target could be 138.150.
If you are a swing trader stop losses should be set 140.830 or (Safest 141.350) If you are a day trader stop losses should be set accordingly.
CADJPY SKACAPITALCan expect a retracement up to 100.350-100.500 on the opening of the market then a continuation to the downside to targets of 99.900, 99.400 then 98.750.
Once each target has been hit PA must be analysed before keeping positions. However, on the opening of the market price can also continue to the downside without an retracement. We must wait for the opening session. (NOTE: If price breaks and closes above 100.500 price can reach 101.000 to give us a triple top.)
Once each target has been met, we must confirm price action before keeping positions. Can enter a half sell position on the opening of the market with a stop loss around 100.750 then look to add to the positon once PA is confirmed at the retracement level.
If Swing Trading stop losses should be around 100.750 (Safest 101.030) If day trading positions could be adjusted accordingly
Nice GBP/USD Short AB=CD setupGBP/USD is forming nice AB=CD pattern on the 4H chart.
This pair has exceeded its C target setting the stage for a move to point D which will at least 100% of the A-B move. The B-C move should never exceed 78.6% of A-B, with that said we will set a stop of 100 Pips which will be slightly more than the 78.6% threshold. It's very well possible point D stretches to 1.272%, 1.382%, 1.618%, or even 2.618% of the A-B move. We will trade it conservatively and exit near the 100% level of 1.51700.
SPX500 SKACAPITAL Our first target being 2080.0, we then can expect a retracement to the trend line then a continuation to our second target of 2070.0. However, careful once target 1 has been met. If price breaks above the trend line then our targets are no longer valid.
Await New Signal USDCADUSD/CAD is trading below the resistance at 1.2570 (04/15/2015 high). Support can be found at 1.2368 (06/02/2015 low). Nonetheless, we do not see the stronger hourly support at 1.2305 to be tested anytime soon.
In the longer term, the break of the key support at 1.2352 (02/03/2015 low) indicates increasing selling pressures, which favors further medium-term weakness. As a result, a significant top has likely been made at 1.2835 (03/18/2015 high). Support can be found at 1.1731 (01/06/2015 low).
Await New Signal
GBPUSD SKACAPITALGBPUSD our psychological target is 1.6000 within this year. However our weekly outlook is to 1.5300-1.5450.
If price breaks above 1.52850 then we are looking to enter at 1.52900 to our first target of 1.5300 then to 1.5400 with a stop loss of 1.52650. (HOWEVER PLEASE CHECK CANDLESTICK FORMATIONS ONCE EACH TARGET HAS BEEN MET).
If price breaks below 1.52535 then price would decline down to 1.52250-1.52000 where we would be looking to go long from with a stop loss of 1.51850. Targets still being 1.5300-1.5400. (THIS SCENARIO IS MORE THAN LIKELY).
GBPUSD forming nice wedge pattern, could be Long or Short tradeThe trade Long or Short GBPUSD.
This pair is forming a nice wedge pattern on the 4 hour chart. With the BoE interest decision coming early Thursday morning we are not sure which way this pair will break, but it will break out of the wedge pattern. We will be going Long with a break of 1.53750 or Short with a break of 1.517000. Our stop will be the ATR.
Wedge Pattern Forming On EURCAD, Could Be Long or Short TradeA nice wedge pattern is forming on the 4 hour chart of EURCAD, it's actually forming with two different lower trendlines extending to different times. This pair could break either way although our algorithm is indicating a move higher. We will be ready to take action on a break of either the higher or lower trendline by 10-20 Pips.
A trade can be taken with a break of the shorter lower trendline but ultimately we want to see the longer lower trendline be taken out for a short position. Keep in mind the 1.38000 level on the daily chart is key and acting as very strong resistance.
Putting CAD/JPY & GBP/JPY Correlation Back On AgainThe Trade: Long CAD/JPY & Short GBP/JPY
The correlation between these two pairs is 77% over the past year. The widest the spread has got over that time is about 800 Pips. Currently these two pairs are 620 Pips apart. The GBP/JPY has enjoyed a nice run-up lately which may be stretched, bumping up against some near term resistance.
With that said we will be entering 1/2 our intended position size with the intentions of easing into the second half if the spread widens significantly. We expect to see this spread narrow over the coming days/weeks. If it happens before we can put our entire position on we will feel comfortable closing out the position with a profit of any amount.
Has USD/JPY Finally Broken Out?20 May USD/JPY Daily
21:03 EST - Has this pair finally broken out to the upside?
With the break of 120.250, clearing the red trendline is pushing this pair up to the 120.870 resistance level. Clearing here, while probably difficult should allow this pair to make a run at 121.850 - 122.000 levels set in Mar & Dec.
We will be buyers on any pullback while remaining above the red trendline. bidding at 120.450. Our stop will be a break of the green trendline or 118.500.
This analysis is brought to you in-conjunction with our Unique Forex Forecasting Algorithm. Unlike traditional lagging indicators our Unique Forex Forecasting Algorithm gives a price prediction with percentage chance of the trade moving as forecast. For more information please visit www.forextrading.unique4x.com
Correlation Trade Between CAD/JPY & GBP/JPY*Position Update: As of 05/19/2015 @ 7:33 EST The Global Currency Scalper closed out both sides of this correlation trade with 112.2 Pips.
The Trade: Long CAD/JPY & Short GBP/JPY
The correlation between these two pairs is 77% over the past year. The widest the spread has got over that time is about 800 Pips. Currently these two pairs are 600 Pips apart. The GBP/JPY has enjoyed a nice run-up lately which may be stretched, bumping up against some near term resistance.
With that said we will be entering 1/2 our intended position size with the intentions of easing into the second half if the spread widens significantly. We expect to see this spread narrow over the coming days/weeks. If it happens before we can put our entire position on we will feel comfortable closing out the position with a profit of any amount. Keep in mind there is a national holiday in Canada today with its banks closed.
This idea was signaled from our cutting edge Unique Forex Forecasting Indicator which uses our proprietary algorithm to predict future price action. Unlike standard lagging indicators, ours gives forecasts in real-time. Anyone is welcome to try it for free at www.forextrading.unique4x.com
Correlation Trade Between EUR/USD & GBP/USD*Position Update: As of 05/15/2015 @ 7:41 EST we liquidated both sides of this correlation trade with a profit of 28.6 Pips.
The Trade: Long EUR/USD & Short GBP/USD
The correlation between these two pairs is 96% over the past year. The widest the spread has got over that time is about 700 Pips. Over the past 18 months we saw the spread widen to approximately 800 Pips. Currently these two pairs are 700 Pips apart.
With that said we will be entering 1/2 our intended position size with the intentions of easing into the second half if the spread widens significantly. We expect to see this spread narrow over the coming days/weeks. If it happens before we can put our entire position on we will feel comfortable closing out the position with a profit of any amount.
Buy AUD/USDAUD/USD is sharply higher breaking the 0.80760 top from April 29th and extends the recovery from the lows set last week and during the month of April. Since mid April this pair has been putting in higher lows and we believe this trend will continue.
We are looking for AUD/USD to test the top trend line of the reverse triangle and will be buyers ahead of this level. Bidding 0.80750 with a targets of the figure 0.82000 and ultimately 0.82950 which is the YTD high set in January. A stop will be placed at 0.78400 which will be raised as the days go by and the higher lows trend-line is followed.
Our Unique Forex algorithm is making the same prediction with a probability of 93%.
Buy AUDJPY on BreakoutAUD/JPY is back to pressuring 95.950 level with the ascending triangle suggesting a break higher to extend recovery from April lows. Support now at 95.000, 94.330 and 93.300 levels. We see these levels protecting the downside and suggesting not letting any losses exceed the extreme support level.
Targets 97.100, 97.400 & 97.660 levels. We will be buyers on a break of 96.150 level. One caveat is that our algorithm is making the same prediction but only 36% odds.
Correlation Trade Between USD/CAD & USD/JPYThe trade: Long USD/CAD & Short USD/JPY.
A nice correlation trade is setting up between USD/CAD & USD/JPY. The spread in the correlation is currently 600 Pips, over the past year the max spread has been approximately 1,200 Pips.
We will be taking 1/4 our intended position size, if the spread continues to widen we will slowly add to our position. There is a good chance we see that happen over the next few days as the US & Canada both have unemployment numbers scheduled for release. If our timing happens to be accurate today and the spread begins to narrow before that data is released we will book our profit.
Short GBP/JPYGBP/JPY is looking like it wants to break to the downside. After consolidating for several hours it's forming a wedge of lower highs and higher lows. Odds are it will break to the downside. As to not jump the gun we will be shorting this pair with a break of 181.800, looking for a move of 80 - 120 pips with a stop of 120 - 130 Pips.
