What should you expect from forex trading in the summertime? What should you be careful of? What type of movements can we see? All this and more will be answered in today’s article.
Today we will be focusing on the very long-term charts of the monthly charts to provide the best answers as possible for those questions! Take a look at the currencies down below to read our monthly candlestick analysis. We are going to show you some awesome analysis, so make sure to read it!
In any case, hope you all had a great trading summer. And I hope that these articles will help you book an even better result next season. Here is another article on forex trading advice and trade example.
Past Forex Chart Examples
The EURUSD was in an interesting situation during this time. Did we see an upside or downside continuation? The currency pair was at a talking point.
Before I give my analysis, I am quite curious what you think happened with the EURUSD? Do you expect a bull month? Or are you a USD bull and expect a bearish EURUSD? Write a comment down below what you are! Thanks!
The monthly candlesticks of May had the following interesting points:
1) April’s candle was a bullish engulfing candle of March;
2) The monthly low of May could not break the low of April;
3) Half of the candle is a wick at the bottom;
4) The monthly candle looks suspiciously like an inside candle.
Key levels for the bulls and are bears to watch out for are these:
1) May’s high and low at 1.3250 and 1.2780;
2) The current bottom at 1.2740.
The key question is:
a) Do we see an upside like suggested with the blue lines in the screenshot below?
b) OR do we see a downside like suggested with the dark red lines in the screenshot below?
My bias is to the upside because last month was an inside candle after bullish engulfing twins. BUT if the EURUSD were to break below last month’s low, then I will switch gears and become bearish. No problem 🙂
The Cable has been stuck in a relatively tight range on this monthly chart. A massive fall of more than 7.500 pips was impressive, but the currency was bouncing up and down within a wedge and sideways movement.
The Cable is very indecisive and any movement within the 1.42 and 1.70 range is basically a bounce of the top and bottom of that range (beige brown horizontal lines). When did we see a break finally? And to which side?
Due to the cable breaking the major bottom trend line of the wedge (blue trend line), the currency seems well set up for a break to the downside and a retest of the bottom.
Of course, there are small support levels which need to be broken such as:
1) Recent bottom / support levels at 1.51 & 1.50 (dark red)
2) Potentially new trend line (bottom black)
To the upside there are crucial resistance levels which could send the GBPUSD back down again:
a) 1.56 top (purple line)
b) 1.58 Fib and resistance (purple line)
c) 1.63 mega top (purple line)
d) Resistance trend line (top black)
My biased is similar to the EURUSD: upside. A move up to 1.58 for a bigger correction and then down to retest 1.35 is still the most likely pattern.
The analysis on the Aussie can be short: a massive 900 pips fall in May! WOW! That is great Forex trading… what a trend!
The downside momentum broke both of the support trend lines (black) and one of the two horizontal support levels (dark red).
What remains is the lowest support level (dark red) at 0.94… once that gets broken then the AUDUSD could make its way down the huge 382 Fib of the monthly chart (green line) at 0.9150. Here you can read The Benefits and Danger of Online Forex Trading.
We had awesome trades with the AUD and GBP in the month of May in our Live Forex trading room. Just awesome. If you are need of more guidance and a Forex mentor, make sure to check out our live trading room, where we not only do the analysis but also trade our Double Trend Trap Strategy live with you!! 🙂 check out the link to our trading room here: https://tradingstrategyguides.com/trading-room-page. Check out other Forex services here: https://tradingstrategyguides.com/forex-services/
The analysis can also be quite simple for the USDJPY. The uptrend has been massive and extremely powerful.
The monthly chart has had higher monthly highs and higher monthly lows for 9 months straight. Could it post yet another bullish month with higher candle high and higher candle low?
The answer I think is yes.
The currency nicely paused at the 382 and 500 retracement Fibs. But eventually broke through those levels and the currency is now halfway to the 500 and 618 Fib.
I believe the chance is high that the currency will use the psychological 100 level to bounce back to the upside and eventually sometime this month hit the 618 Fib at 105.50.
In any case, last month’s low of 97 should not be broken otherwise this uptrend is temporarily put on ice.
Ok Forex traders, that concludes our article on the Forex charts for today. I would really appreciate a comment from you which explains your vision on the chart. Thank you!
Please leave a comment below. The more you are involved in Forex, the better you become as a trader and become that leader/captain that every Forex trader needs to be in order to succeed. Looking forward to seeing how many comments we get.
Thank you for reading!
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