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Dlifestyletrader

Has Dow Jones PeakIf we just based on this technical chart, I think we do have a case of a very overbought stock market. Dow Jones was seen rejected at the peak of a 3-year expanding triangle and, at the same time, the peak of a 12-month rising wedge. This phenomenon is very similar to last year's mid-February where the market peaked technically and plunged amid the coronavirus outbreak. So fundamentally, we are still missing a catalyst like this pandemic and since the government is not going to stop printing money any sooner, we probably won't see another crash like last year. However, a sharp pullback can still be expected as many investors might want to liquidate some positions at this point. Therefore, this week we will give it a try to short when the price climbs a little higher and reach 31900.
FX:US30Short
by AlgoVenture
Gold Buy Opportunity at Great DiscountThe gold has extended its fall on rising yields which has continued to strengthen the dollar. Interestingly, the gold has also reached and found support at the bottom of a 6-month falling channel. The major correction has now reached the 61.8% of the Fibonacci level while indicators are showing strong signs of oversold. However, the current bearish momentum, together with a strengthening dollar, might cause the price to inch lower before it truly bottoms out. Therefore, we can start to buy with very small positions around 1700, and continue to build position all the way to 1640. All you need to do is to decide how much risk to take out of your entire portfolio, divide it into segments and open positions accordingly within your calculated risk.
OANDA:XAUUSDLong
by AlgoVenture
EURUSD Strong Bearish Momentum but LIMITEDIt was just as forecast last week that EURUSD continued to drop further. While the bearish momentum seems strong (and definitely sellable in the short-term), it will face very strong demand in this coming week. The first thing we should always bear in mind is that EURUSD already has a strong reversal signal since it broke above a 12-year falling trendline (as seen in the monthly timeframe). There's also a successful retest of the 12-month falling trendline before EURUSD continued to climb. Other than that, we can see strong confluence at the 200ma on this chart with a strong demand zone and indicator an overbought market. Therefore, we can continue to sell int he smaller timeframe but exit as soon as a wave of trend is completed. Otherwise, wait patiently for signs of reversal as it reaches 1.18 region to long EURUSD while an ABC correction is completed.
Long
by AlgoVenture
1
Dollar Remains StrongerAbout 2 months have passed since the dollar reaches the lowest at 89.2. Since then, we have seen the dollar making a significant rebound and the recent downtrend was breakaway after last Friday's strong bull. In fact, the dollar hasn't pulled back enough for another wave of bear strong enough to take over the market trend again. We expect the dollar to continue its uptrend for the next 2-3 weeks until it reaches 92. If the dollar pulls back from the recent rebound at first, look for a buying opportunity at 90.5 - 90.2.
TVC:DXYLong
by AlgoVenture
1
GBPUSD: Approaching Strong SupportGBPUSD is about to face very strong support at the 1.39 demand zone. This is strong support made up of the middle band, the bottom of a rising channel, and a rising trendline of the KD indicator. We expect some significant rebound to occur as it pierce deeper into the demand zone at about 1.3850. However, the plunge from last week was caused by strong rejection from a 5.5-year resistance level and the KD indicator is showing an overbought sign. Therefore, we can also expect more selling pressure as it climbs back to about 1.4070. If continuous support or a fakeout is seen at the demand zone after a retest, we can expect GBPUSD to resume an upward trend and eventually break higher. Otherwise, if the demand zone fails to hold and the price closed below 1.38, we can start to look for a selling opportunity towards the demand zone at 1.33.
Long
by AlgoVenture
2
Dollar Continues with Lower High/LowThe dollar has ended last week with another weekly lower high and lower low, showing that selling pressure is still building up. We expect further downside and a test of the demand zone at 90, and then towards the bottom of the range. If the price pulls back earlier in the coming week, we can expect a pullback towards 90.6 - 90.8 minor supply zone to sell again. Otherwise, If the price breaks above 90.8, we could expect a further pullback towards 91.4.
TVC:DXYShort
by AlgoVenture
1
EURUSD Finds Support and Trades HigherEURUSD had a significant rebound last week after finding support at a 9-month rising trendline as well as the resistance turned support level 1.2030. It was also seen rebounding off from the mid-Bollinger band and has been trading at the higher band for the past 9 months too. EURUSD currently faces some resistance at 1.2140 but the rejection was recovered very soon last Friday, showing that buyers continue to emerge whenever the price dip. This week, we could expect EURUSD to continue climbing but may face a second rejection at 1.2140 before a stronger upside movement. If the price pulls back again, look to buy again at 1.2050 demand zone. Otherwise, EURUSD is expected to climb and reach the supply zone at 1.2250 region.
Long
by AlgoVenture
Dollar Continues to Trade at the Lower BandThe dollar fell last week after rejected from the middle band in the weekly timeframe. At the same time, the dollar has also broken below a rising trendline and a rebound was rejected again just before the market close last Friday. The dollar continues to show weakness but do expect a ranging market before any significant downside. If the price continues to stay supported at 90.3, we could expect a stronger rebound towards the supply zone at 91, then we will have a better price to continue selling the dollar. Otherwise, the dollar is expected to continue to trade lower and test the demand zone at 90. Once the price breaks below 90, the dollar will be considered oversold and buyback will be expected.
TVC:DXYShort
by AlgoVenture
EURUSD may Begin RangingEURUSD fell further as expected last week but found strong support and rebounded off from 1.195 demand zone. However, we also saw a break below of a 9-month rising trendline in the daily time frame which could cause further downside in the future, but yet so in the weekly time frame. The direction of the market seems quite unclear and what's most likely to happen is that market will range. Based on the strong rebound last Friday as well as the completion of 2 bearish trends, EURUSD could climb further this week and retest the supply zone at 1.22. Otherwise, the price might just resume falling once it touches the current falling trendline and retest the demand zone at 1.195.
Long
by AlgoVenture
1
Has Dollar Found Range Top?The dollar climbed last week just as expected as it formed an inverse head and shoulder after the completion of the 5th Elliott wave. However, the dollar faced strong selling pressure just before reaching key support turned resistance level at 91.8 and shaved off entire gains the day before. Looking back into January 2018 where the dollar also fell to the same low, it is very likely that the rebound might have reached the top of a ranging market. Therefore, this week we expect the strong selling pressure from last Friday to continue this week, first testing support at the rising trendline then finally the support at Fibo 61.8. Otherwise, it could also climb again and retest the resistance at 91.8 before reversing the short-term bull again.
TVC:DXYShort
by AlgoVenture
EURUSD About to End ConsolidationLast week, EURUSD has undergone a ranging market as it continued to trade within a symmetrical triangle. It is also noted that the consolidation came after a bearish trend where we saw the price coming off from a 33-month high. We also noted that the price has been constantly resisted below the 200 and 60 MAs, and a harmonic pattern was formed at the end of the month in the H4 chart. And since we expect the dollar to turn bullish in the coming month, we also expect the EURUSD to start forming a bearish trend after a full month of ranging market. We can start to sell EURUSD at the start of the week, betting on a strong resistance at the top of the symmetrical triangle and a bearish harmonic, expecting the price to reach and retest the demand zone at 1.2060. If EURUSD manages to reach 1.2060 and continue to trade lower from then on, we are expecting a stronger bearish trend towards 1.19 by the end of Febraury.
Short
by AlgoVenture
1
Dollar Continues to Find SupportThe dollar has ended January with a relatively small bullish candle, showing signs of support and an end to a 2-month falling trend. In the month of January, the dollar started the month with a slightly bearish tone, bringing the currency to a 33-month low. It then started to reverse and rebounded strongly until it faced strong resistance at strong supply 90.8. However, the reversal was short-lived and it quickly found support and gain traction upwards, making another attempt to break above the supply zone at 90.8. That didn't work out as the price was resisted again but somehow manage to close somewhere just below the resistance. In the end, January left us with an inverse head and shoulder in the daily timeframe, and a sign of reversal, or rather a pause, in the monthly timeframe. Since that's the case, and since last week's Fed did not show any sign of easing monetary policies any further in spite of a dovish ECB in the same week, we think the dollar is ready for a bullish February. We will look for buying opportunity if the price stays above 90 and until it reaches 91.8.
TVC:DXYLong
by AlgoVenture
Gold Inverse HnS after Strong PullbackAt the beginning of January, we saw that the gold price has broken above a 4-month falling channel. After which, the price pulled back strongly and continued to find support at 1820 which has lasted for the past 2 months. In the midst of it, an inverse HnS was formed last week and the market closed with a bullish weekly candle. If the price were to fulfil this pattern and climbs, it will be the second breakout of the 4-month falling channel and could possibly signify the end of consolidation and the beginning of a new trend. While nothing is certain, the current market condition does favour a gold long with a very rewardable risk-reward ratio. This week, we shall look for buying opportunity as long as the price stays supported above 1830, until it reaches the supply zone at 1900, and hopefully it will retest the key resistance once again at 1956. Otherwise, we could see the gold falling all the way back to the previous support at 1770.
OANDA:XAUUSDLong
by AlgoVenture
3
EURUSD Rejection from Range TopJust like the dollar, EURUSD was rejected from an extreme high near the top of a 4-year range, also after completing the 5th Elliott wave. Last week, EURUSD found support and rebounded off from the current range bottom at 1.2050 which also caused a break above of a falling trendline. And again, just like early 2018, we expect the price to range further and thus a rejection from the range bottom signals us to look for buying opportunity. We shall look for buying opportunity until it either breaks below the current rising trendline (around 1.2120) or climbs and reaches 1.2285.
Long
by AlgoVenture
Dollar Rejection from Range TopSince the dollar has reached the bottom of a 4-year range while completing a full Elliott wave, the price has begun a sideways market. As seen in early 2018, it took about 3 months for the ranging market to be completed and broke out into a trend. As of now, the dollar seems to have confirmed its range top and bottom at 91 and 89 respectively. Last week, we saw that the dollar was rejected at the range top and started forming a downward trend. Therefore, we will continue to sell the dollar this week if the price continues to stay resisted under 90.5 and until it reaches near enough to the range bottom around 89.7.
TVC:DXYShort
by AlgoVenture
1
DXY Embarks on a Ranging MarketThe dollar has ended 2020 with a yearly loss of more than 7%, and more than 12% from last year March the highest near 103. Last week, the dollar continued to fall and break new low but managed to recover and close just next to the week's opening price. One fact for sure is that the dollar is too weak to perform another bearish trend that's significant enough. In fact, the rebound came after it found support at a broken falling trendline as seen in the H4 chart. While we do not expect the dollar to be strong, a rebound is almost inevitable. We can start to buy the dollar and aim for a range high, probably somewhere nearer to 92 first.
TVC:DXYLong
by AlgoVenture
Dollar Completes Final Bearish WaveJust as predicted, the dollar continued south and completed the final 5th motive wave, both in the weekly and 4-hourly time frame. The dollar held losses at 89.7 as soon as it reached the 161.8% Fibonacci extension level, similar to that of early 2018. The dollar has sustained about 12% loss to the pandemic and amid an unprecedented amount of stimulus to keep its economy afloat and the stock market from crashing. The latest loss seemed like a full-priced in of an upcoming stimulus package yet to be approved. This week, we could expect the dollar to still inch a little lower but ultimately, it will likely to kick-off a period of a ranging market. We can start focusing on buying the dollar at the bottom, with an initial expectation of a range between 89 to 91.
TVC:DXY
by AlgoVenture
1
EURUSD: Last Bullish Wave of the 5th WaveJust like the dollar, EURUSD is in the midst of completing its 5th motive wave of a 9-month Elliott wave. The euro weakened a little and consolidated just before the ECB announced increased bond purchases. Upon the announcement, EURUSD gained on selling expectation and buying the fact. It managed to stay afloat just before the week ended, thus we can assume that EURUSD hasn't finished its bullish momentum. Simply long EURUSD as it pulls back to the lower band, or within the price range of 1.21 - 1.2050. P.S. On a side note, we do not presume that EURUSD will definitely climb in the coming 2 weeks. Do decide on where to cut your losses should things go south and be flexible enough to change your trading plan.
Long
by AlgoVenture
3
GBPUSD: Major Reversal Cont'dGBPUSD had one of the biggest weekly falls in 3 months after yet another rejection at the 2.5-years major supply zone 1.34 area. It was forming a bearish Gartley in the daily timeframe while, at the same time, completing the 5th motive wave of a 9-month Elliott wave. The pound is constantly under pressure due to breakdowns in Brexit talks which is most likely going to persist on throughout December. Therefore, this week we could continue to sell GBPUSD by waiting for the pullback towards the current supply zone at 1.33 area.
Short
by AlgoVenture