Few trades from Thursday and Friday

The most important thing that happened on Thursday was the following headfake that cost many people a lot of money (including me this time). On M1, U/CAD broke support shortly after 7am and went down to 1.0248. From there, it rallied 250 pips in 9 hours. At the time of the fake break, M1 looked like this:



Today, H4 looks like this:



The reason is pretty obvious, it was a 61.8% Fibo bounce. Also we had divergence on the RSI (which I didn't notice at that time :\) This is suggesting upcoming USD strength. The markets confirmed this by heavy selloffs seen in E/U and G/U on Friday.

Moving on, E/G had a few nice bounces. The first long only went for +9 pips, but bear in mind that pips E/G are worth 1.55x more than pips in USD majors.



Finally, U/CHF broke the strong daily support at 1.0350. The break was one of the statement-making ones, over 100 pips in two hours. The support then became a resistance and we had a bounce for 15+ pips.



Finally they put up the price to the previous hourly support and sold off from there.



The weekly close on U/CHF was exactly at 1.0350 so we'll what happens next week. E/U will most likely head lower, along with E/G, judging from strong bearish candles on the weekly. Also, we have a double/triple bottom on U/J daily and a trendline that is begging for a break.

-Tyler