This week we decided to focus on the EUR/JPY and AUD/USD currency pairs. As the Yen strengthened in correlation with other yen crosses, we notice a downtrend forming that could potentially test deeper levels of support in the near future. The AUD/USD pair was also a good choice this week because we reached a new yearly high at the beginning of the week with a quick trend correction. It is important to know that trend corrections are very common in an extremely over-extended market. Therefore, this pair corrected throughout the remainder of the trading week for around 300 pips.

This week we brought back focus to the USD/JPY currency pair as we noticed a bearish breakout formation. The biggest issue with currency pairs having very little movement is that a lot of patience is needed. Nevertheless, this didn’t stop us from collecting pips as the market began to dip. We also noticed the AUD/USD continuing its uptrend and reaching new highs at the end of the week. We will begin to look for this uptrend correction in the next week. The EUR/USD didn’t move to surpass the highs of the previous two-weeks as it still remains in a correctional phase. We’re expecting a breakout to the upside in the next week or so as price action paths the way.

In continuation from the previous week, into a new month, we kept our focus on the EUR/USD and AUD/USD currency pairs for trend continuation. As expected, the EUR/USD began to hold at the support area on Tuesday and the uptrend resumed for the rest of the week. The AUD/USD also resumed its uptrend after the correction last week. Even though we focused on these two currency pairs, we continue to watch for trend corrections and continuations on all majors and crosses.

This week we traded both the EUR/USD and AUD/USD currency pairs. As mentioned in the previous week’s post, we expected a trend confirmation on the EUR/USD, but did not receive one until the end of the week as we waited for support confirmation at the 1.46260 area. The consensus is that we did receive a slight market correction on this pair as we went down to test support, but it looks like next week will resume the bullish trend continuation. The AUD/USD currency pair, being over-extended, showed an uptrend correction as the U.S. dollar began to show strength this week. We were able to capitalize on the retracement, but an uptrend continuation still remains likely.

The primary currency pairs of focus for this week were the EUR/USD and USD/JPY. While we did not end up trading the EUR/USD, we did notice a yearly high at the 1.49938 area, which meant for either a potential trend reversal or continuation, thus leaving uncertainty in market direction. However, we marked this pair for trade reconsideration after we allow price action to develop more. This pair has been in a strong uptrend since March, so a point of exhaustion or consolidation is nearing. We did trade the USD/JPY this week as it continued in bullish nature. Despite the low average daily range of this pair, we were able to profit as price moved to retest the monthly high and resistance area.

This week we focused solely on the EUR/JPY currency pair after noticing a major potential uptrend. Sure enough, price broke above the 132.220 resistance area and continued throughout the week to the second area of resistance being 135.480 for a total of 260 pips. We expect this pair to reach new highs in the next few weeks before selling off. While we did look at other currency pairs, the EUR/JPY had the best setup for a breakout with an acceptable average daily range.

Our two pairs of focus this week were the GBP/USD and USD/CAD. We began trading the Cable in a consolidated 200 pip range, which then resulted in a retest of the 1.61200 area of resistance on Wednesday. The market was expected to have bearish intentions for this week, but without commitment in either direction is was difficult to capitalize on this pair. The USD/CAD, however, had good bearish movement as it still continued to downtrend after hitting the yearly 1.3000 high in March. This is due to continued weakening of the U.S. dollar and the price of gold reaching an all-time high. We expect the USD/CAD to reach the 1.0300 low in the next few weeks.

Now that we have approached the fall season, the markets are beginning to form new trends. This week involved trading the AUD/USD and EUR/GBP pairs as we formulated a trend study. The EUR/GBP began the week reaching a 30-day high at the 0.9300 price after a major uptrend from the previous week. The market soon corrected, dropping roughly 200+ pips to the previous week’s pre-breakout consolidated range. Selling the drop was a profitable move and expected, but it was not certain that the market would retrace back up to the 30-day high, thus ending our trades for the week on this pair. Moreover, our fundamental analysis suggested that the AUD/USD pair was going to trend upward and reach a new 30-day high. Buying the monthly pivot area of 0.8640 at the beginning of the week resulted in additional profit providing a successful finish for the month of September.

This week our traders focused on the EUR/USD and GBP/USD pairs. Beginning the week, the Euro climbed its way in strength to reach a one-year high of 1.4843 against the U.S. Dollar. This rally ended on 9/23 and price began to retrace to a weekly low of 1.4614 concluding a 250+ pip range. We bought the rally at the beginning of the week, but because we expected price action to reach a historical resistance level near 1.4900, we ended up not banking as much as we wanted to. Furthermore, the GBP/USD broke down through a support area of 1.6100 reaching a 30-day low in which we patiently waited for a retracement back up. This never happened, but we are now expecting a move to the upside early next week as the range for this pair begins to widen.

The GBP/USD has been in a consistent range for over a month now while reaching tops and bottoms on a consistent basis. At the beginning of the week, the Cable found itself struggling against range resistance at around the 1.6741 price, but then quickly fell down back into the range after U.S. Labor Day weekend for a drop of 200+ pips. Additionally, the EUR/JPY bounced off of a critical support level at the 131.00 price to continue throughout the week with upward movement of about 360+ pips. We were able to take advantage of both the major resistance level of the GBP/USD and critical support level of the EUR/JPY.