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Trading Scenario: As per our weekly analysis EURUSD proved to be bullish as it retested 1.3000 key level. Now the question is whether EURUSD Bulls can really win to prove the Stress Test data is real?

1.3000 level is very important in terms of future price movement of EURUSD. If it can really pass through this stress test, price is likely to get momentum and go on towards 1.3660 level. If it happens then it will prove that current downtrend is complete and new journey will start on EURUSD for weeks ahead.

Let’s look into Intraday picture on EURUSD, it is now stuck in a narrow range from 1.2700 to 1.3000 which is 300 pips. The key level of resistance for this pair is 1.3000, a very big test again where this pair failed twice last week. It is now ready for another test. Bulls seems to have much strength, but at 1.3000 level bears are giving a tough fight. It is now traveling in a bullish channel and waiting to come out this narrow range.

If price breaks 1.3000 key level and was able to sustain above that, go long targeting 1.3100 level, where another key test comes into play. At 1.3100 level the daily bearish trendline comes in, where EURUSD will face significant resistance. If it breaks that level, then the road will be cleared targeting 1.3300, 1.3500 & 1.3660.

If this pair fails to breaks 1.3000 stress test level, it is likely to fall to 1.2700 key support level comes in before making any other move.

Entry Strategy: Buying dips in an uptrend at support levels, while market trades above trend reversal level 1.2725

Trading Scenario: As per our weekly analysis AUDUSD proved to be bullish my breaking 0.9000 key level and is trading just above that. Will Bulls maintain their battle from this point is a big question. AUDUSD is now in a Big Battle Zone 0.9000 to 0.9100. But as we look at price action it looks to be firmly heading up and staying above 0.9000 key level of support now. In this zone of 100 pips it is going to come close to bearish daily trendline which could be key test for its continuation of uptrend.

As we look into yesterday on AUDUSD it has not made much of a pull back, it holded o.8950 support and bounced of that to 0.9000 level and holding relatively firm above that. Now our scenario in terms of trading this pair is to go long above this key level of support 0.9000 targeting 0.9100 initially.

More conservative approach is to look for a pull back to 0.8850 and 0.8900 levels, where we have significant support and also Bullish channel support as well. Going long from this level will give more good risk to reward ratio, targeting 0.9000 & 0.9100 level as initial targets.

If AUDUSD is able to break 0.9100 level it will push to 0.9186 & 0.9336.

Alternate Scenario: If price fails to trade above 0.9000 level, we could see a fall to 0.8850 to 0.8900 levels. But going short at that point will be a very aggressive counter trend trade.

Entry Strategy: Buying dips in an uptrend at support levels, while market trades above trend reversal level.

As we mentioned last week that is pair could range between 1.5400 to 1.5055, as it did indeed. Now as we look into charts price is able to hold above 1.5200 support level and bounced off from the bottom of bullish channel support. This signifies uptrend is still in place. Last week prices closed inside the range of previous week’s range, so for the price to get momentum it has breakout of 1.5448 to 1.5124 range.

As the pair is bullish we anticipate top of the range to be broken in order to get momentum for further upside move. As this pair has strong resistance at 1.5470, breach of that level will push this pair targeting towards 1.5650, 1.5788, 1.5900 followed by 1.5970

Our suggestion on this pair is to go long if prices break above key resistance level 1.5470 targeting towards 1.5650, 1.5788, 1.5900 & 1.5970.

What a great day we had. A total of +400 pips on only 3 trades. We started trading early today in Asian session than usual and it worked out great in our favor. Our analysis over the weekend proved to be the key in entering these trades early; right at the beginning of new trend.

As we look at the charts this week, the weekly closing turned out to be a doji, which leads to indecision in market, but if we consider it has made new high last week and yet to make a new low, this means that uptrend is still in place.

If we look at fundamental point of view, last week’s market was waiting for EURO Bank Stress Test results, which was released late Friday US session. Out of 91 banks that were reviewed, only 7 banks failed the stress tests; five Spanish banks, one German bank and one Greek bank. Though results came out positive for EURO, we won’t read much into it. The Doji on market closing may be due to market waiting on these results. We will still stay bullish on this pair from a technical point of view and fundamental point of view, but we will be cautious as the long term trend is still Bearish.