Trading idea on major pairs: 14th November -18th November

trading idea

AUDUSD pair

There has been a sharp fall in the Aussie dollar in the last week since the mighty U.S dollar has gain gained its former glory to certain on the event of the presidential election. The pair has breached the triangle support zone at 075697 level in the last week. Just below that level there lies the strong dynamic support level of the 200 days SMA. Professional traders are cautiously waiting for the price to breach the 200 day SMA in order execute their short order in the market. But the support level at 0.75115 might provide fresh buying pressure to the AUDUSD pair in the upcoming week in the event of Australian Reserve Bank monetary policy meeting minutes. If the support level at 0.75115 holds then we will see an imminent bullish move in the Aussie dollar towards the dynamic resistance level at 0.75903.This level is going to provide strong selling pressure to the AUDUSD pair since the 100 days SMA and the broken triangle support which turned into resistance lies there. Professional traders will be looking for bearish price action confirmation signal near that level to enter fresh short in the market.

The Aussie dollar is going to face a significant amount of selling pressure in the upcoming week. Professional traders will be looking to sell this pair at a higher price with bearish price action confirmation signal. If the resistance level at 0.75903 holds then we will see a sharp drop in the AUDUSD pair towards the next critical support level at 0.71454 level. But anything above 0.75903 level will turn the market sentiment strongly bullish at the current situation which will ultimately lead this pair towards the next critical resistance level at 0.7700 level. Considering all the parameters the pair has very little chance to move upward in the upcoming week. A valid break of the critical support level at 0.71454 level will bring strong bearish momentum in the AUDUSD pair which will lead this pair towards the key support level at 0.68262 level. A valid break of that support level will again fuel up the long term bearish momentum in the market.

EURJPY pair

The EURJPY pair has been trading within an ascending triangle for the last couple months. In the last week, the pair tested the channel resistance at 116.382 and ended up below that level. If the pair manages to breach that level then we will see a nice bullish move in the EURJPY towards the next critical resistance level at 118.424 level. This level is not that strong to restrict the bullish move in the EURJPY pair. So considering that level as week resistance the pair is most likely to head towards the key resistance level at 121.657.This level is going to provide a significant amount of selling pressure to the EURJPY pairs. The long-term 50 % Fibonacci retracement level also lies at that point. A valid break of that level will lead this pairs towards the 61.8% retracement level at 123.556.If the pair manages to breach that level then long term bearish momentum in the EURJPY will come to an end and the newly formed bullish trend will take the control of the market.

Professional traders are looking to enter short in the EURJPY pairs near the critical resistance level at 116.382.But before going short at that level it’s highly imperative to use bearish price action confirmation signal on the daily time frame. If the channel resistance level holds then we will see a sharp drop in the EURJPY price towards the next critical support level at 112.851.This level is going to provide decent buying pressure to the EURJPY pairs. But a valid break of that level will bring further bearish momentum in the EURJPY pair towards the next critical support level at 109.60.A clear decisive break of the price below that level will fuel up the long term bearish momentum in the market with fresh selling pressure.

USDCAD pair

There has been a strong bullish rally in the USDCAD pair in the last week since the U.S dollar has gained extensive strength in the market on the event of the presidential election. Currently, the pair is heading towards the critical resistance level at 1.35505.This level is going to provide decent selling pressure to the USDCAD pair but the pair is most likely to breach this level due to the recent bullish sentiment of the U.S dollar. The next critical resistance for the USDCAD remains at 1.36420 level. This level is going to provide a significant amount of selling pressure to USDCAD pair since the 50% retracement level also lies at that point. Professional traders will be looking to sell this pair with bearish price action confirmation signal at that point with an initial bearish target of the critical support level at 1.33080.

If the 50 % retracement level manages to restrict the bullish move of the USDCAD pair then we are going to see another sharp drop in the USDCAD pair in the upcoming week. If the support level at 1.33080 fails to restrict the bearish move of the USDCAD pair then the air will head towards the next critical support level at 1.3000 level. This level is going to provide a significant amount of support to USDCAD pair since it is one of the major psychological support levels in the market. A clear decisive break of the price below that level will bring further bearish momentum in the market towards the next critical support level at 1.27646.Considering all the parameter the overall bias still remains bearish in the USDCAD pair event though the pair is most likely to go up during the starting of the week.