Favio Poci | Apr 26, 2020 07:10AM ET
In this week's analysis, we will touch briefly on 4 markets that we believe will have considerable short-term moves and therefore, present the best trading opportunities.
ES/SPX 60 Minute Chart - Apr 26th
Despite historic unemployment data and the uncertainty caused by the pandemic, the broader markets seem to maintain their short-term strength and recovery mode. The FED is there to keep the Titanic from sinking, hence the unreal strength in every bear attack. Nonetheless, we couldn't care much since we trade what we see in the market and not what we want. The following are our two hypotheses for the last week of the month:
We always trade according to hypothesis #1 unless we get invalidated.
YM/US30 60 Minute Chart - Apr 26th
The same analysis goes for the Dow! When markets rally, Dow rallies the hardest; when markets sell-off, Dow makes sure to leave no one alive. The following are the trading hypothesis in this market:
EURAUD Weekly Chart - Apr 26
This currency pair has completed primary Wave A-B-C vs. 1-2-start of 3, and we are currently sitting in the reversal leg which needs to aim at least 1.560 in the coming months. For this week, we are expecting a dip near 1.670 then a reversal back above 1.700 resistance.
We will be trading in accordance to the Hypo #1.
GBPUSD 60 Minute Chart - Apr 26
Not much talk is needed here. The clearest pattern exists where targets and invalidation are right in front of our eyes.
Prepare-Execute-Adjust-Execute!
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