Forex Trade Signals and Setups August 2nd

EURCHF – Can it break the Big Figure?
As we wrote in our post last week on July 26th
In terms of where the pair is going for now, we will watch for a break of yesterday’s low at 1.1517 to confirm the trend is still in place.  Such a move should continue to the all-time lows at 1.1405
and in the following post on July 27th
Could it go beyond this?  Well considering the regional fears are not likely to dissipate soon, nor the global concerns, and the fact this pair has continually taken out new lows, we suspect it will likely find lower ground

Since then, the pair has continued to sell-off with consistency and intensity selling off 7 of the last 8 days and shedding over 800pips across those days.

It has bounced off the big figure at 1.1000 which has provided a modicum of a bounce/support as the 4hr charts are showing a quick double bounce off these levels (see chart below).

It would be interesting to see if the bulls want to stake a claim here as their line in the sand.  However, we ultimately feel the selling pressure is too strong and consistent for people to want to get long this pair.  Thus, look for rallies towards the 20ema on the 4hr chart as entries to sell again or for a 4hr close below the big figure for further selling to continue.

GBPUSD – Upcoming Kumo Break?
Since July 13th, the GBPUSD has been holding (albeit in a choppy fashion) above the 4hr Kumo and has had several surges of gains followed by choppy consolidations.  Nevertheless, its been gaining since the July 12th lows sub 1.5800 up to 1.6450 for a nice rally for a little more than half the month.

August however may prove to be the time to sell the cable as its ran into some solid selling at 1.6450 shedding 150pips after failing to breach the level.

But what its also close to doing is breaking the 4hr Kumo which has a flat bottom coming up at 1.6221 just above the 38.2% fib level of the last major upmove (see chart below).

Should it have a 4hr close below the Kumo and flat bottom, expect price to at least go to the 50% fib about 90pips south  but possibly unwind to the 1.6050 level which is the 61.8% fib of the aforementioned move. Just look for a Kumo break for clues to see if the selling is going to continue.

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Buddhist, Trader and Philanthropist

I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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