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It was rather flat last week in my trading portfolio in terms of trading as none of the setups posted last week came into play. There is lots of back and forth price action across major markets at the moment, that is likely to produce new patterns to look at in coming week.

Trading signals  CHINA A50

In addition to earlier posted "wider" bullish BAT pattern on 4 hours chart, there is another one that shaped last week and very likely to get completed in coming days. It is very much counter trend setup, close to recent lows, therefore much more cautious initial position has to be taken in my book. Will be looking to get involved from 6673's level initially.


FX space is likely to experience lots of volatility this week due to FED interest rates decision on Wednesday. From fundamental point of view we are likely to see continuation to the downside as nothing really indicates at the moment that tapering will not continue. From technical perspective though there are no clear shorting signals at the moment on the chart. This is when knowledge of options can be handy, as looking at the lower level PUT's indicates that move to the downside is currently in more favor than to the upside. Back on the charts there is Gartleys pattern that if completed @1.3363's levels will present buying opportunity. Personally i would not expect it to complete anytime sooner than next 2-3 weeks, unless volatility will accelerate to abnormal levels. In later case entry to this position will be very much in question in my book to due wide market ranges. See the chart below.


The fundamental story of this pair is quite similar to earlier described EUR/USD, however there is noticeable GBP strength over the recent week against EUR when looking at EUR/GBP pair. This is also reflected on GBP/USD chart, as there was more action to the upside recently. UK economy is doing relatively well in relation to neighboring countries, with lots of market rumors that Bank Of England (BOE) is first of developed markets central banks likely to start raising interest rates in the forthcoming future. On the chart there are two bullish patterns, the wide Cypher pattern (in red) and smaller BAT(in blue). Will not get into more details as it stands now market curve leads to the invalidation of those patterns. 1.6668's is the area where those patterns will become invalid if will get there first.


There has been lots of weakness on this pair over the last week or two. It was anticipated pretty much by Royal Bank of Australia (RBA) stating 0.85 rate of comfort for Aussie currency. Technically there are no immediate opportunities to jump into the short wagon at the moment. Having said that there is bearish Cypher pattern to be completed higher @0.9's level. Very early days on this setup though, personally will keep it muted until 0.877's level is broken on 4 hours chart.


The fundamental story on this market remains rather neutral leaning towards bullish side with many equity indices selling off at the moment, some money is moving back to Gold, however there were no sharp moves to the upside so far indicating that conviction in Gold is not as strong as we have seen in the past. From technical perspective we are at the early stage of forming bullish Cypher pattern @ 1203's level. Again it is still very early days at the moment, if 1279's level will be broken first the pattern will become invalid.

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