Watchlist update
CADJPY has completed the retracement we talked about in yesterday’s WLW and appears to be stalling. This is where we’ll watch for either a bounce, as a continuation to the short side, or see if the price will treat the short like a fakeout and resume its former pattern to the long.
EURUSD seems to be testing the resistance side of the consolidation area and is currently divergent on the 1h chart.
GBPUSD is flirting with a breakout to the long side, I’m watching this one closely, but will play it carefully if I take it because it has been bull after bull and may retrace before picking up momemtum after breaking out long.
USDCAD has hit 200% extension of the consolidation area on the 1h chart and is showing indecision. Also divergent on the 1h chart. I’m watching this for some pips out of the retracement.
USDJPY, if it breaks long again above 87 I’m in the trade. Conversation is already shifting toward intervention and the JPY has been too strong for too long.
Those are my faves. What are you watching/trading?
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I AM LONG GBPJPY
ALSO GBPUSD
Would you ever take a test long on the USDJPY if it bounces off the 86.615 support? or is that no longer trusted…… slight growing selling sentiment
Do you take divergence more or less seriously 1, 4 hr or daily?
USDJPY 1 hr candle was a neat hanging man on the support level. 20 SMA just crossed the 62 EMA
Wow…great questions.
1)If I had caught the candle that broke resistance, yes, I would’ve taken a tester position, but since I didn’t catch it I will wait for some other signal now.
2)Longer term charts (4h/D)always hold more weight in my analysis because they absorb a lot of volatility and give me a big picture view of things. Divergence, by itself, is merely something I keep an eye on, not anything that drives my trading. It can be a signal for a sentiment change and I want to keep that in consideration, but it can also change and in a candle or two no longer be divergent at all so I have to remember that.
I know the E/U broke out, but I’m not thrilled with the sentiment there, I’m still waiting.