Trading idea on major pairs: 31st October -4th November

EURUSD pair trading idea

The EURUSD pair has broken the triangle support line near the 1.10103 level and currently getting ready to for the strong bearish move. The pair has found some support at 1.08491 level and started its correction. On last Friday the pair closed with a strong bullish candle which created a massive chaos into the mind of investors regarding the strength of the critical resistance level at 1.10225 level. Due to the significant strength of Friday’s candle, there is a slight possibility that the pair might breach the critical resistance level at 1.10225.If the pair manages to breach the triangle support level which turned into resistance then we will see a retest of the critical resistance level at 1.11408.This level is going to provide a significant amount of selling pressure in the EURUSD pair since the 100 day daily SMA lines at that level. Professional traders are waiting patiently for the bearish price action confirmation signal near the key resistance level to short this pair.

If the critical level manages to restrict the bullish correction of the EURUSD pair then the first initial bearish target for the EURUSD pair would be the critical support level at 1.08470.A clear decisive break of the price below that level will bring further downward momentum in the pair towards the next critical support level at 1.05235.This level is going to provide a significant amount of support to the EURUSD pair since the weekly support also lies at that point. However, a valid break of that key support level will bring strong bearish momentum in the market in favor of the long-term bearish trend. Considering all the technical and fundamental parameters the overall bias remains bearish on the ERUSD pair. We will look for selling opportunity with bearish price action confirmation signal near the critical resistance level.

USDCAD pair trading idea

The medium-term uptrend in the USDCAD pair is still intact and currently the price is heading towards the critical resistance level at 1.34650.In the upcoming week, the pair is most likely to test that level where we might find some selling opportunity. However, a bearish price action confirmation signal is required before we take any short position in the USDCAD pair. If the pair manages to breach that level then we will see a strong bullish rally in the pair towards the next critical resistance level at 1.36414.A clear break of that critical resistance level will bring strong bullish momentum in the market which will ultimately lead the pair towards the key resistance level at 1.4000.A valid break of that level will confirm the establishment of a long term bullish trend in the market.

If the critical resistance level at 1.34650 holds then the pair is most likely to fall towards the critical support level at 1.29820 level. Professional traders are waiting patiently to enter short in this pair since the risk-reward ratio will be extremely great compared to long entry. However, before entering short in this pair it is highly imperative to use bearish price action confirmation signal near the key resistance level. The pair is most likely to find strong support near the 1.29820 level. A clear decisive break of that level will bring strong bearish pressure in the market which will also trigger medium term bearish trend in the market. Considering all the technical parameter the USDCAD pair has both upside and downside potential. We will be cautiously observing the price action signal in the higher time frame to trade this pair in the upcoming week.

USDJPY pair trading idea

The USDJPY pair has broken critical resistance level at 104.208 and currently trading well above that level. In last Friday there has been a bearish retracement in the pair towards the support level at 104.208 (Previous resistance level).Professional traders are waiting patiently for bullish price action confirmation signal near that level to enter long into the USDJPY pair. The first bullish target for the USDJPY pair would be critical resistance level at 107.463 level. If the pair manages to breach that level then we can assume that the pair is forming new bullish trend in the market. A clear break of the critical resistance level at 107.463 level will lead this pair towards the key resistance level at 111.359.This level is going to provide a significant amount of selling pressure to this pair. However, a valid break of that level will bring strong bullish rally in the pair towards the 116.00 level.

If the critical support level at 104.208 level fails then we will see a bearish momentum in the USDJPY pair in the upcoming week. The bearish target for the USDJPY pair would be the key support level at 102.97.From that level, we might see a range movement in the USDJPY pair for the rest of the week. However, the pair is most likely to break it ranges movement in the southward direction with an initial bearish target of the next critical support level at 100.60 level. This level is going to provide a significant amount of support to USDJPY pair since the long term bearish trend line resistance will be action as strong support at that level. Considering all the parameters, the overall condition for the USDJPY pair has both upside and downside potential. In the eyes of trained professional, this pair is trading at a very risky place since the last week breakout might be false breakout as the week ended up by forming a dark cloud bearish price action confirmation signal. So it’s better to stay on the sideline until the market clearly breaks a significant level.

 

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