Technical analysis and trading opportunities for the week from 25 to 29 January 2021
Technical analysis of the dollar index
The dollar ended the trading in the previous week by returning below the monthly pivot level again, as the dollar was in a corrective wave to the upside after the price rebounded from the monthly support level 88.96.
The dollar's correction continued to the level of the cloud on the daily chart, as the price now bounces back, forming a price top with the cloud. The end of the bullish correction was confirmed once again when the price succeeded in breaking the monthly pivot point and closing below it. Consequently, the dollar's decline is expected to continue next week, to return to the monthly support level of 88.96, to try to break it and continue the dollar's downward trend.
To trade on the dollar next week:
I recommend focusing on short positions for the dollar, as the dollar is available for sale from the current level.
It is also possible to wait for the price to break the lowest trading price in the previous week, in order to enter into the sale more safely.
Technical analysis of the EUR / USD
The daily chart for the pair shows the return of the price to trading above the monthly pivot level, which is the beginning of a bullish trend for the pair after the price rebounded from the cloud on the daily chart and the formation of a clear bottom.
(The pairs's monthly chart also gives the start of a new bullish wave, as the previous month's candle succeeded in breaking through the cloud and closing above it, then the current month's candle so far has re-tested the cloud and the price rebounds to higher now)
Consequently, daily and monthly charts for the pair illustrate the possibility of starting to buy the pair from the current levels, as the next target of the price on the daily chart is the monthly resistance level of 1.2375.
To trade on the EUR / USD next week:
The buying opportunities for the pair will be the best in the coming week as it is possible to buy from the current level with the market opening.
It is also possible to buy after breaking through the highest trading price on the previous Friday.
Technical analysis of the GBP / USD pair
The movement of the pair is on a daily oscillating chart between the up and down waves above the monthly pivot level of 1.3490.
The price movement this month is somewhat similar to the movement that formed in the previous month, but with smaller price waves and therefore it appears that the price continues in the sideways movement, tending to rise.
The previous week ended again with the price attempting to descend, but in Friday's trading the price gave a bullish wave at the end of the day, which indicates the possibility of the price starting next week to form a bullish wave aimed at a new high we expect it to be near the 1.3850 resistance level.
To trade on the GBP / USD next week:
The buying chances will be the best for the pair as the current level is considered good for buying.
It is also possible to monitor price behavior at the beginning of the week and enter buying after the price breached the highest price that was traded in the previous week.
Technical analysis of usdjpy pair
The pair is on a daily chart, it is trading in the area below the cloud and above the monthly pivot level in a sideways move, from which the price appears to be facing strong resistance from the cloud.
If we look at the price movement in the past, we will see a repeat of the same price behavior upon reaching the cloud, where the price moves sideways, ending in a downward wave for the pair.
So far, the pair's move indicates the possibility of a price drop to give a bearish price wave to the monthly support level 102.50, which is the lowest price for trading this month, and thus breaking this support gives new opportunities to sell towards a new support level.
To trade on usdjpy next week:
The chances of selling will be the best for the pair as we have two selling levels
The first level if the price rose to the cloud line and rebounded to the downside.
The second level after the close of the day below the lowest trading price in the previous week.
Technical analysis of usdcad pair
Daily chart for the pair, the price is moving in a sideways area between the monthly pivot level of 1.2815 and the support level of 1.2627, as the price ended the previous week's trading, returning to the upper area of this occasional trade near the monthly pivot level.
We will see a return to down again with next week's trading, as it is expected that the price will start trading this week, approaching the monthly pivot level, and then drop to try to break the lowest trading price this month.
To trade on usdcad pair next week:
The chances of selling will be the best for the pair next week, as I recommend two selling levels.
The first level is when the price approaches the monthly pivot level of 1.2815 and the price bounces on the 4-hour chart.
The second level of sale is at 1.2670, which is the lowest price for the previous 4-hour candle.
(I have short trades on the pair since the previous week, my entry points are considered wrong. I hope those who follow my analysis will benefit from this comment. I entered the first and second sell based on the 4-hour chart only without looking at the price setting on the daily chart .. This is one of the trading mistakes that I recommend avoiding it, and when you are analyzing a specific frame, you should quickly look at the different frames to make sure that your entry point does not conflict with the situation on other frames)