Forex Technical Analysis by Ali Muhammad-
Nov 2nd 2020 – Nov 6th, 2020
NZDCHF Analysis: Looking to buy from the below demand zone between 61 and 78 Fibonacci level.
Trend: Trend Reversal on break of last lower High in NZDCHF.
Trade Idea: NZDCHF was retracing downward from 1st September. it was in a clear bearish trend due to four consecutive lower lows. Recently due to a massive upward move and break of last lower high, trend has been reversed. Now we will look for a bullish entry instead of bearish. The first point in forex technical analysis is to look for a clear trend a trend reversal. Look for a clear environment instead of choppy market.
As Trend has been reversed now we will look for a bullish entry. A good entry needs a good price. here comes supply and demand zones to pick entry from pin point with minimum drawdown. if you don’t know about supply and demand zone then click here.
Fibonacci level 68 and 78 can also be used for precise entry but sometimes you will miss your entry that’s why supply and demand zone plays an essential role in technical analysis. I have drawn Demand zone in the chart as well as FTR. Price has chances of reversal from FTR but we have to follow risk management also so be patient for best price to enter. Look below in the chart.
Here is the NZDCHF analysis.
EURJPY Analysis: Looking to buy from the below demand zone
Trend: Overall Trend is Bullish. Price has been oversold as well with consecutive lower lows on lower timeframe.
Trade Idea: EURJPY has been retracing towards demand zone. Main confluence here is that a strong key level is coming on the way which has the ability to reverse the price. Fresh Demand zone has added more power to the key support level. there are high chances of reversal in price.
in the EURJPY analysis either you can wait for a pin bar / engulfing candle and then entry or direct entry from demand zone. if you want to ask how many confluences are needed for a best setup then your answer is that more clear a setup with at least three confluence will be a best one. Do not go to pick more setups just pick setups with a clear view and with mental satisfaction without any confusion.
I will prefer one good setup in a month instead of 10 poor setups with no improvement in knowledge as well as emotional disturbance.
Here is the EURJPY analysis.
Less is More
Note: All the viewpoints here are according to the rules of technical analysis. we are not responsible for any type of loss in forex trading.