This Week Was About FX Trend Corrections
Alpari Research & Analysis | May 12, 2017 06:56AM ET
That was an easy week. Filled mostly with the correction movements , which makes it great for the trend followers as they can jump in into good trades with better prices. We prepared three mid and long-term trading setups, which can be useful in the next few trading days or even weeks.
First one is the cable, GBPUSD, where the overall trend is positive but in the short-term, traders are correcting recent upswing. It would be great to see the price falling a bit deeper, to the 1.275, where we do have a combination of three major supports: trendline, horizontal support and the correction equality pattern. I am looking forward to see what the price is about to do there.
Next one is the GBP/CAD, where the main upswing was even stronger than on the cable. Here we also do have a correction and also it would be nice to see it going a bit deeper. Our target is 1.746, where we have a correction equality pattern and a horizontal support.
When talking about correction equality pattern, we have to mention USD/PLN, which made the third one in a row! And it wasn't just a simple short-term movement but the huge 4500 pips downswing, which finished by the beautiful bullish engulfing on the weekly chart. As far as I am concerned, according to the technical analysis – that is a strong buy.
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