Updates: Week Ending Jan 24, 2025

I've been thinking about this for a while, and in 2025, I will be experimenting with a new type of content.  I'll call it End-of-Week Updates, or Updates for short.

The goal of these updates is to simultaneously recap notable trades completed in the past week and highlight pairs that will be in my focus for the upcoming week.

Trade Recap

Starting off with a trade recap, my long position in EURCHF successfully hit my take profit target. Since the second half of 2024, we can observe a clear downtrend on the daily timeframe.

EURCHF Daily

The strength of this downtrend weakened in December 2024, and a wedge formation can be observed as we entered 2025. On January 20th, price breached above a resistance level and the EMA20 started crossing above the EMA60.

From a technical perspective, this pair appears to be transitioning into an uptrend.

EURCHF H1

I entered a long position on the morning of January 23rd. With the daily ATR was 39 pips, I set a stop loss of 30 pips and a take profit of 60 pips. One day later, this trade reached my take profit target.

In hindsight, I could've monitored this pair on the hourly timeframe and entered three days earlier. In turn, this would've provided me with an opportunity to build size by scaling into this long position.

Pairs In Play

For the week ahead, my focus will be on the EURUSD, GBPUSD, AUDUSD, and NZDUSD pairs. These four pairs appear to be undergoing a major trend reversal.

EURUSD Daily

I'll be using EURUSD for this analysis, but this signal is present on all four pairs that I've mentioned. EURUSD has been in a downtrend since September 30, 2024.

Since the beginning of this month (January), this pair struggled to keep the momentum. It failed to make new lower lows, and it breached two key lines I've been monitoring.

Price crossed above the trendline on January 20th and then crossed above the neckline on January 24th. To me, this is a strong indication that a trend reversal is underway, which I'll be watching over the following week.

EURUSD H1

Over on the hourly (H1) timeframe, I plotted two fair value zones. My signal for entry is when price exits this zone to the upside.