Revisiting Swing Trade Ideas From This Month – EURUSD, USDCHF, GBPJPY, and others.

A number of the swing trades discussed this month are still ongoing or setting up. Here’s an update on them: USDCHF, EURCAD, NZDJPY, GBPJPY, EURUSD, and USDMXN.

USDCHF

Let’s start out with USDCHF. This trade idea was discussed on Aug. 7. It is still hovering near a long-term support level. It has had a couple of false breakouts. I am still long, eyeing a move back up toward the descending channel with a target just above 0.96.

USDCHF trading near support for potential swing trade Aug 27 2020

There is still the possibility of a breakout to the downside. That wouldn’t result in an imminent trade though. I would wait for a specific setup before entering.

EURCAD

This trade was discussed on Aug. 10. There was the uspide possibility, but the downside possibility seemed more likely with the price having the sharp reversal off resistance. The resistance level goes back to 2016. 

EURCAD moving lower off resistance level Aug 27 2020

One entry was discussed in the article. This was followed by a couple of other pullbacks and moves back to the downside. The pair is still trying to work its ways toward the 1.52 target.

NZDJPY

This pair was forming a potential topping pattern at the top of a long-term descending channel. It broke lower out of a consolidation triggering a trade.

The price has rallied back and is re-testing the resistance area. If the price consolidates again (even on a 4-hour or hourly), that could present another entry opportunity.

NZDJPY forming potential topping pattern near top of long-term descending channel Aug. 27 2020

GBPJPY

GBPJPY is a trade that is still pending. At the moment it is still moving up. This pair is at the top of a long-term descending regression channel, and at the top of a short-term rising channel.

gbpjpy

Before jumping in on the short side, I want to see a significant false breakout on the upside, or continued waning momentum on the upside. That will also likely give us a solid RSI divergence which can act as a confirmation signal if a price-action trade setup develops. This was all discussed back on Aug. 14.

EURUSD

The EURUSD is near a descending trendline extending back to 2009. On prior visits of the trendline, the price has typically peaked its head above before declining. The price is struggling to move higher right now. Each attempt to rally this month has been met with quick selling.

EURUSD struggling near long-term descending trendline Aug. 27 2020

 On August 18, the last time I wrong an article on the EURUSD, a consolidation did develop and broke to the downside. That scenario was discussed as a trade opportunity. The pair is currently chopping around between 1.1850 and 1.1750 (rounded), with a big false breakout to the upside today. This looks like it is setting up for more downside.

EURUSD 4-hour chart with consolidation breakouts to downside near long-term resistance Aug. 27 2020

The short-term downside target is 1.1720. Obviously, if looking at a longer-term trade, there is potential for a lot of downside if this is a reversal off the long-term descending trendline. I am not confident in that assessment yet, so I am not interested in a long-term trade at this time.

USDMXN

This trade, discussed on Aug. 24, opened and closed today. News caused a false break of the bottom of the consolidation. The price then rallied above the consolidation hitting the target of 22.2.

USDMXN consolidation breakout reaching descending trendline Aug. 27 2020

Now it is a wait-and-see game whether the price consolidates again and provides a possible trade near the descending trendline.

Day Trading More Your Thing?

If day trading is more your thing, check out my article and video on trading the EURUSD from Aug. 26

There were four very similar setups in the London session on Aug. 27: 3 winners and 1 loser. There was at least one other early in the US session, and then another toward the London close. All winners. Can you spot them?

By Cory Mitchell, CMT @corymitc.

Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage.

Customer Reviews

5
0%
4
0%
3
0%
2
0%
1
0%
0
0%
    Showing 0 reviews

Leave A Comment?

You must be logged in to post a comment.

Thanks for submitting your comment!