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Head and Shoulders on China A50. EUR Bearish Trend.

   

Welcome to this week’s Market Blast Technicals where we will look at the China A50, EURCAD, AUDCHF, EURAUD, USDJPY.

 

Looking at the Daily chart on USDJPY we see price action has risen to the upper trend line in this long bearish trend which has run for most of last year.Screenshot 2021-01-19 at 10.37.29

Zooming out to the 4-hour chart, we were watching this consolidation pattern which price is attempting to break but we will keep an eye on the Stochastic Oscillator to see if we have an indication that the downtrend will continue.

All Euro pairs are in a bearish trend.Screenshot 2021-01-19 at 10.37.42

Price action on EURAUD for example, has just bounced off the upper trend line with the next key level of support at $1.56.Screenshot 2021-01-19 at 10.37.53

We see price action on AUDCHF showing Aussie strength and price has just bounced off the lower trend line with the next key level of resistance at 0.69 francs.

EURCAD is also in a downtrend and we see price action in this familiar consolidation pattern.

If we zoom out to the Daily chart we see that the post-COVID Fibonacci level of 38.2% is serious support.Screenshot 2021-01-19 at 10.38.09

The Chinese economy is clearly recovering but we see the China A50 heading into consolidation in this head and shoulders pattern with substantial support.

A break of the neckline has the next key level of support at 17,100.

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That’s all for now.  Happy trading with Valutrades and we will see you later in the week with our Trading Tips video.

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Disclaimer:

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.

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