Weekly Analysis

Weekly Analysis (10/07/2016)

Hi Guys,

First weekly post for a few months, finally connected to the internet. This weeks post covers my view on Cable, EUR, Aussie & Kiwi.

Any questions, get in contact with me at  enigmaforex@hotmail.com or @Enigma_FX


Since March the Cable gradually moved up higher, up towards the 1.48 level. And reached 2016 highs at 1.50 in the days leading up to BREXIT. Within 24 hours price went from year highs to year lows, dropping a massive 1,800 pips! Since BREXIT GBP has fallen off further making 30 year lows in the process.

Clearly this market is in a downtrend and it will be a few weeks before it builds up solid market structure to create trading opportunities. There are no support levels to speak of and clearly there are a lot of resistance above, so for now this is a wait and see market for me. Although if price moves back up into 1.32 area this could provide a potential shorting opportunity.

> Resistance Areas: 1.32, 1.37, 1.40, 1.44 & 1.48
> Support Areas: N/A




The EUR, after reaching a high at the end of April has been moving lower, creating lower lows and lower highs. On 23rd June, just before the BREXIT referendum, price created a double top around 1.14. Due to the Leave vote of BREXIT the EUR dropped over 500 pips the next day, although not as much as the Pound, it was still a significant move and created a new lower low in the process and breaking through a upwards trend line. Since then price has been consolidating moving up and then back down into the 1.106 support.

Again like with the GBP, I will be waiting for the market to settle a bit more before deciding on taking a trade, but for now I feel it has further to fall to the downside.

> Resistance Areas: 1.146
> Support Areas: 1.08 & 1.106




In April the Aussie reached yearly highs, before dropping off sharply, breaking through several key support zones in the process. Having found a bottom around 0.72 price has slowly been moving higher, bumping up against and being rejected at 0.76, price is now currently trying to reach this level again.

Price is approaching this 0.76 level which has served as key support and resistance in the past, both long term and short term. It is also coming up to a downward trend line around the same area, adding some confluence to a potential resistance area. Anything above this level would likely see price move further up and re-test the current highs of 2016, if not price may tighten up further between the two trend lines and horizontal levels.

> Resistance Areas: 0.79 & 0.76
> Support Areas: 0.74 & 0.725




Apart from a fake breakout mid-May this year, the Kiwi has been grinding higher within the boundaries of an upwards trend channel.
Price is currently testing the top trend line boundary after having broken above the 0.72 resistance level.

Price could pull back down into the short term 0.712/20 support zone towards the bottom of the trend line, moving in line with the upward movement.

The next key resistance level is up at 0.771, however a minor resistance level can be seen at 0.742.

Any pull backs into support would be a good opportunity to hop onto the uptrend.

> Resistance Areas: 0.742
> Support Areas: 0.674, 0.689 & 0.72


Market commentary and trade ideas are solely my opinion and are not to be considered as trading advice. Presented in a blog format, it is intended for informative and entertainment purposes only. Please do not follow or act upon these opinions, you should undertake your own analysis and be aware of the risks involved.