Forex Outlook: 1/24/22 - 1/28/22
This new week in the world’s most liquid market was again very rich in opportunities. Once mastered, Forex offers numerous and regular opportunities to all traders. It was possible to catch many trend continuation moves this week, such as the one we’re going to study together right now.
NZD/USD +130 pips – The move of the week.
- The long-term trend was bearish.
- The downtrend broke with a very large bullish impulse, a sign of probable reversal.
- Creation of bullish structure as soon as the previous long-term downtrend breaks out. However, no accumulation phase took place and the price started to create higher highs and higher lows as soon as the bearish pattern broke, which is rare. There was therefore a high probability that the price would retrace after introducing buyers at the time of the change in structure.
- Fakeout from the top of the bullish channel and overextended move to try to trick traders into buying. Probability of bearish continuation to the bottom of the bullish channel in order to hunt liquidity.
- NZD/USD fell 130 pips and chased liquidity.
Looking ahead to next week: What moves should we be watching for?
EUR/AUD: Continuation of the downward trend?
After breaking its long-term downtrend, EUR/AUD could reject its medium-term uptrend channel top and fall to the channel bottom.
USD/CHF: Bullish move ahead?
USD/CHF could reject its bearish channel bottom and make a bullish correction to its bearish channel top.
EUR/GBP: 70 pips drop at the beginning of the week?
The price has reached a major resistance area which it could reject in order to continue to follow the long-term bearish pattern. The price could reach the next support area.
We hope that this article will help you prepare for another week of trading, and that we have helped you to better understand what happened the week before. We put education first and do everything we can to help you progress.
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Have a great trading week everyone, and thank you for your loyalty.
Please note that these analyses are based on price action elements only and are in no way trading or investment advice.