This is a trend following analysis using a breakout entry formation that generally has the greatest results. This analysis is good for 4H trading, but can also be used on almost all time frames and on all pairs. Basically, this analysis is based on breakout and certain forms of reversals. The analysis seeks to highlight potential breakout setups that can result in higher reward. To ensure consistent successful trades, the trader should exercise some degree of patience and wait for the perfect set up to execute trades. There’re are several types of breakouts, I only focus on two types of breakouts, trend line breakout and double top/triple top/ bottom breakout. Even with the two, I only trade double top/ triple bottom breakout most of the times and trend line breakout at some other times. Double top/Triple top/ bottom breakout is more dependable and reliable than the other. Note, trend line breakout includes also breaks that occur out of various shapes such as wedges, channels, triangles, and all the other shapes part from rectangles. Below are the simple sketches of some of the breakout setups I’ll be focusing on.
Technical observation This week EUR has been trading on an increasing bearish bias and i expected it to close that way, however, next week I expect a possible retracement to the upper side to the resistance zone 1.1520-1.1464 followed by a bounce within it to sell EUR. If you were flat this week,
Technical observation GBP is rallying above a supportive level 1.2567 on an increasing bearish momentum and is likely to close that way. I expect a possible penetration below the line with a big red candle followed by a correction to it and a rejection for a surge to the lower side. Remain neutral
Technical observation USD is trading on an increasing bearish momentum above a supportive zone 107.80-107.12 and my expectation is a clear breach below it with a big red candle followed by a correction to it. If USD penetrates below the zone and corrects to it but gets rejected within it then I ex