As illustrated in the chart above, we will be looking out for price action signals at the top and bottom boundary of the triangular channel.
If market breaks out, we will be looking out for a retest to of the trend-line to continue in the direction of the breakout.
Market has successfully retraced to the broken support turned resistance. We are backing price to re-bounce off this resistance and continue in its downtrend. To further buttress this bias, we can see that the 25EMA coincides with the resistance.
A break above the 70.42 resistance puts us in a neutral position. A break above the 74.116 changes our outlook to bullish.
A similar set up to the AUDJPY is seen on the AUDUSD. Hence, a similar trading approach will be adopted.
We can see that price is just at the broken resistance turned support. The formation of a bullish pin bar at the support has given us an indication of some downward rejection. Although the formation of a strong bearish bar at the end of last week has put a threat to the bullish outlook, we still need a clear close below the 1.6603 region to nullify the bullish outlook.
We will be looking out for price movement around the support region in order to make trading decisions.
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Have a great week ahead!!
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Please note that the Weekly Trade Plan is meant to make us prepared for the week ahead. Market analysis is as accurate as the close of previous day/week. Outlooks and trade action plan can very much change as a result of new market information.
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