Questions from Students (Week 20)
This week we answer some questions from students regarding AUDUSD, EURUSD & GBPUSD.
Question from Ben:
Due to the weakness in the greenback, I have noticed that the 3 pairs of major currencies have all broken out of the DOWNWARDS ED channel after consolidating for a few months and breaking their 1 YEAR HIGH and 2 YEAR LOW price.
Except for AUD/USD, the other 2 pairs have broke it 1 year high price.
1. Can we consider it as a DOUBLE BOTTOM for AUD/USD & EUR/USD and a inverted H&S for GBP/USD? Looking at the weekly charts attached below.
- YEAR to YEAR – Trend DOWN
- MONTH to MONTH – Trend UP
- WEEK to WEEK – Trend UP2. Should we be looking for LONG set up in H4 now especially after yesterday’s WEAK US retail sales data which further dampens the greenback.
However, there is rise in the price for the 3 pairs are very steep and fast, cant find an appropriate BUY set up for them & missed the ride =(
3. What is your advice for the 3 pairs USD majors and how should we approach it?
Is it the end of USD for Q2?
Reply from Jerome:
In most cases, I would prefer for the chart pattern to have symmetry.
- For AUDUSD, I would agree that is a possible double bottom (Weekly Line Chart).
- For EURUSD however, there is no symmetry but I would see it as an 1234 upflow pattern.
- GBPUSD, there is a chance price could come down at some point to create a right shoulder.
- For EURUSD & GBPUSD, these show a clear upward momentum at the moment. Look for a 1234 pattern near supports.
- For AUDUSD, the picture is not as clear as the other two pairs. However, there is support near to current price. We’ll base our decision on how price reacts to this zone.