Hello Traders from FTMO and welcome back to another Sunday Market Review. This week I found interesting breakouts on the daily charts as well as a nice downtrend on Silver.
NZDUSD - Daily
NZDUSD has formed a falling wedge pattern (bullish). Trendlines are constructed from the falling highs and lows as seen on the chart. Last week, price broke to the upside with a strong bullish candle. For the next week, I expect bullish bias on this pair.
The chart above shows NZDUSD on the weekly chart. From this perspective, price broke to the downside below the range contained by the two fat horizontal S&R levels. The breakout on the daily should only test the first major resistance level before resuming the downtrend on the weekly.
CADJPY - Daily
In the chart above, we have a clean breakout of a triangle pattern on the CADJPY daily. We have two touches on the upper trendline resistance and three touches on the lower trendline support. Price broke to the upside and we again expect a bullish momentum.
I've drawn major (thick) and minor (thin) S&R levels to predict possible price movements. Price will likely test the upper major resistance level.
Trying to define a trend is sometimes easy and sometimes confusing. However, on Silver, it is definitely easy right now as we see a beautiful downtrend. A downtrend is defined as a series of falling highs and falling lows. This is indicated by the red arrows. How far will Silver continue falling? Now the price hits a minor resistance level, will the market resume its downtrend?
That is all in this week's Sunday Market Review.
I wish you a good trading in the upcoming week and remember, a trend is your friend.
Khac Tu Nguyen,