The #Forex Market Wrap is here!
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Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
In this video, we’re going to go through the Forex Market Wrap. We’re going to go through our Blueberry Jam trades for this week, how we can manage those positions, and what we can do next.
So, CAD/JPY hit targets overnight. Our trade was here, we can see that we shorted this candlestick here, placed our stop losses above the highs, and targeted this high. The market came through and hit our two to one target nicely. There’s nothing to do here. We looked at this position because the price was reacting from a big level. It was pretty much a technical trade.
The price came up into that four-hour, those weekly highs. The daily chart rejected it and now, we’re in that overbought condition. We had a nice bearish candlestick, we shorted it to an area where we expected buyers to come back into the market, which they look to be doing at the moment. So, that was a great trade.
The other trades is EUR/AUD, and the market is pushing back to the downside, but the trend has changed in the four-hour.
What we can do, because it is Friday, we are expecting the market to pull back into this zone here to go long again. So, what we can do is bank the profits. We can close the position and wait for Monday.
On Monday, if the price pulls back into this zone, we could look for another trade. We banked that small profit because we don’t want to leave it too many trades over the weekend in case there’s any big news announcements. So, we want to be looking for a pull back into this buy zone to look for a long position there.
We had a bit of profit banked on EUR/AUD as well.
Same for GBP/AUD is back at this level. Of course, it’s entirely up to you how you manage your positions, but this is how we’re going to do this.
The trend is starting to form on that four-hour nicely. The price is pulling back into this previous structure high. This is where we’d be looking for a change in cycle on that 15-minute timeframe to go long.
If you look at that 15-minute timeframe, you can probably see that the price is starting to push to the upside., If we break this high on the 15-minute timeframe, we could start seeing that trend back to the upside on GBP/AUD.
So, it’s entirely up to you on how you manage these positions. But what we could be looking for is a position on Monday to go long again on GBP/AUD. I’m going to close this position as well for some more profit.
We’re going to dive into USD/CAD. USD/CAD is pushing to the upside. It’s starting to pull back, but we’re expecting a retracement into either this previous structure point here or where the red line was on that previous four-hour high.
Again, you could look for that on Monday. If the price pulls back and starts to bounce, that’s great. If the market pulls back into the red line area or even our entry position and starts to bounce, then that’s great.
What we can do is bank the profits and then add another position. We’re over a 1 to 1 at the moment. We might as well bank this, then wait for another position to go long into that same area. So, again, I’m going to close this out for another bit of profit.
We ended up around 163 pips on USD/CAD trade. With CAD/JPY trade, we ended up with 230 pips. With EUR/AUD, we banked a small amount of pips, around 116 pips, and with GBP/AUD, we banked 105 pips.
All-in-all, we had a very successful week for the Blueberry Jam. This is all down to the strength and weakness table analysis and waiting for that four-hour timeframe to change cycle.
Once we get that four-hour trend in play, then we look to buy the market. Ideally, we want to see the price pull back into these four-hour areas and then change the cycle.
So, there’s a good example here on GBP/AUD: the price broke to the upside, it pulled back into an area of support, we’d like to buy it but we need to take a look at these two swings here.
I’m going to show you the trend once we start seeing those impulse moves.
If I go down to a 15-minute timeframe, this is what I mean when I say by the change in trend: you can see that once we start pulling back on that four-hour, we start getting those bearish candlesticks. You can see that the trend is lower on the 15-minute; we get lower lows and lower highs. Once that change in trend forms, we get a little bit of an indication that the trend is changing because we get a higher low. The market then breaks to the upside.
We’re now starting to get higher highs on that 15-minute timeframe. This is an excellent indication that the trend will continue up. You can see the higher highs; the market pulls back, retests in that zone, then the market continues to form higher highs. That’s what we want to see: those timeframes matching up there. You can then look at the current position here.
Change in cycles
If the market changes cycle again, we might see a head and shoulders pattern, an inverse head and shoulders pattern here, or a complete change in a cycle where the market will break to the upside.
If it does and that trend continues again. You can expect to see another four-hour impulse move. So, what you want to do is to look for those change in cycles on those lower timeframes to agree with your position.
So, keep an eye on GBP/AUD. Monday is going to be the best day. It’s going to be one to watch next week, same with EUR/AUD.
We’ll highlight the impulse move again and highlight the pullback here. We’ll see that change in simplicity on those 15-minute timeframes.
You can see the market is making that trend to the downside. As soon as we break out of that trend, the market breaks trend higher high, and boom! Look at that!
The markets start making those higher highs until it changes; we’re breaking through new lows now. The market is now in that pullback phase. Where do we expect that pullback phase to continue? This zone is where we’re going to be looking for that change in the cycle again.
So, keep an eye out for those, we’ve had some key levels being hit. But, we do have an open position on AUD/USD. You can leave that if you wish to see the trigger by the end of today, or what we can do is cancel this order and replace it again on Monday.
That depends on what you want to do. I’m going to leave this open; we added quite a bit of profit. So, we’ll see if it can trigger by the end of today.
Thanks for watching the videos this week. If you did enjoy the content, please like and subscribe to the YouTube channel, and I’ll speak to you next week. Cheers!
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