In this week's market analysis, we will look at potential trading opportunities and zones where we should look for evidence and potential moves.
Pairs and markets analyzed this week: AUD/USD, CAD/CHF and silver
As expected last week was very wild due to the British Referendum ('Brexit' vote) and traders should be prepared for even more Volatility in Eurozone (GBP and EUR based markets).
The euro dropped 2.4% against the dollar and 4% against the Japanese yen on Friday. The Euro Stoxx 50 index closed down 8.6% on Friday. Spain’s IBEX and Italy’s FTSE MIB both plunged more than 12%, their worst one-day percentage losses in at least 20 years. That compares with a 6.8% fall in Germany’s DAX index.
AUD/USD: Bearish Price Action signal not worth taking.
As mentioned last week, we were looking for a Bearish Price Action to enter a short trade. We did get an engulfing reversal, however, the risk ratio was only 1.7:1 so not worth taking.
CAD/CHF, Still going long
For the past 2 weeks ago we have been waiting for a bullish evidence (Price Action) near the highlighted support to go long, and this is what we did when we saw this pinbar on June 16th. For those who went long and aimed for a 3.6:1 return, be patient but watch out for bearish evidence to exit this trade.
XAG/USD silver, You can now Sell with a nice 6.84:1 return on your investment
As mentioned 2 weeks ago, we were still going long, were not ready to sell, however, silver was approaching resistance zone 17.76-17.96. For those who went long, we would recommend exiting now with a nice 6.84:1 return on investment.
It's now time to watch out for bearish evidence and a potential move to the downside from this major zone.
Reminder: This is educational and general information only (not advice or a recommendation)
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