Who Lost Money This Week ? (We Didn’t)
Fri 5th May 2023 : Daily Forex Price Action
Today we’re looking at Trading Setups in:
- CHFJPY (Primary Focus Pair)
- CADCHF (Covered in Video)
- EURJPY (Covered in Video)
Primary Focus Pair: Overview
CADCHF
Our forex strength V weakness tables provided us with the idea to look at CADCHF for a short opportunity this week.
We managed to profit 60 pips on a short term move into the major 0.6500 lows.
On Tuesday 2nd May, we received the pre-signal with CAD confirming it was weak on both tables.
The next day on Wednesday 3rd May, we got a confirmed signal with the CHF appearing as strong on the tables.
The CADCHF chart saw price had rejected the key resistance level of 0.6625.
Sellers from this level would look to target a key level of support, in this case it would have been the major lows at 0.6500.
Price hit our targets, and reversed from the lows as expected.
CHFJPY
We have been trading and tracking the price of CHFJPY for some time now, leading to a 900+ pip rally !
However, most recently price was trading above and into key new highs at 154.00.
Our forex strength Vs weakness tables suggested that it could still trade higher.
However, using our technical analysis we saw that price was over extended and that it needed to pullback.
Using this information we highlighted a support zone at 151.50, which could be an area where buyers re-enter the market.
The only condition we would want to see at this point is CHFJPY remaining on the tables.
Price did test the support of 151.50, but CHFJPY had disappeared from our tables, meaning we should leave this pair alone.
Price then continued to trade through support. If we hadn’t used our tables for reference, we would have been in a losing trade.
EURJPY
EURJPY was on our watch list this week after it stormed through the 2014 highs at 148.50.
This was due to JPY weakness that appeared on the tables.
However, as with the CHFJPY analysis, we identified that the JPY has become over extended and that it could begin to strengthen.
Sure enough price then pulled back and below the 148.50 highs, suggesting the market may now reverse.
