Weekly Analysis

Weekly Analysis (24/07/2016)

Hi Guys,

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

I’m working on an 8hr strategy, once fully back tested I will be posting my trades within my weekly analysis.



The Pound has been consolidating into a further tightened range this week, moving between 1.3315 & 1.3066 (from highs to lows). What interesting is that Friday, Wednesday and Thursday’s bar either opened or closed right on the 1.3108 level, suggesting this price zone is a key support where there a buyers of the pound. Apart from Monday’s candlestick, each day’s candlesticks had fairly long wicks top and bottom, again suggesting that there is indecision in the market at the moment, and therefore we have stayed in a tight range.

The head and shoulders pattern mentioned last week still is intact, just. But will keep an eye on it. I feel however this market is still looking to push down further.

> Resistance Areas: 1.31, 1.37, 1.40, 1.44 & 1.48
> Support Areas: 1.28




Previously I mentioned that the EUR was creating a wedge pattern which price had just closed on the edge of. This week we have seen price break outside the wedge and the short term 1.10 support. With a bit of indecision mid-week (rejection of the 1.10 level), Friday’s bar confirmed strength to the downside.

We are still trading within the range of bar formed on BREXIT, but are moving closer to its low. The next downside target would be 1.0808.

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




After the previous Friday’s Engulfing candle and close below 0.76, price aggressively sold off on Tuesday after a very small candlestick on Monday. Price pushed slightly lower to end the week, but we are now hovering around the 50EMA and an upwards trend line, with a slight break and close below both from Friday’s candlestick.

Because price failed to make new highs after breaking through 0.76, I’m anticipating further movement downwards over the next few weeks. Especially if we break below the 0.74 support level.

> Resistance Areas: 0.784, 0.79 & 0.76
> Support Areas: 0.74 & 0.725




This week price pushed below the short term 0.712 level that could have been a point of a bounce. 4 of the 5 days saw price close bearish, with Friday creating a small bullish bar, which also created an inside bar pattern.

We are now sitting below the 50EMA, and upwards trend line. However price found some support at 0.697, which has held in recent times and created some strong bounces back upwards. With Thursdays candlestick creating a pine bar (although bearish closing), an inside bar formation and a little less in price momentum, it wouldn’t surprise me if we see price move back up, possibly to re-test the underside of the upwards trend line price broke. Alternatively if on Monday and Tuesday we don’t see any hanging around by price and a break to the downside, this would indicate the confirmation of prices recently bearish strength.

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


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.