Trading the forex market is both an art and a science, and this week, EUR/USD, EUR/JPY, and NZD/USD offered great opportunities for traders leveraging robust analysis tools and a disciplined trading strategy. By combining technical analysis insights with fundamental drivers, we captured precise entries, optimized trade management, and secured consistent profits. In this blog post, we’ll dissect these trades with detailed technical setups, the role of key fundamental catalysts, and actionable insights for traders.
EUR/USD: How Precision Technical Analysis Spotted Bearish Potential
The EUR/USD pair demonstrated clear bearish momentum this week, as reflected in its consistent lower lows and lower highs on the charts.

Technical Analysis Breakdown
Structure Identification: The price broke below the Break of Structure (BOS) levels on the hourly timeframe, signaling a shift in market sentiment toward bearish dominance. A clear supply zone was identified between 1.0585–1.0600, which acted as a resistance area.
Moving Averages:
The price traded consistently below the EMA dynamic resistance, aligning with a bearish trend.
The convergence of EMAs provided additional confirmation of downside pressure.
RSI and Momentum: The RSI hovered below 40, indicating a lack of bullish momentum. This complemented the bearish market structure, suggesting continuation of the downtrend.
Sell Trigger: A retest of the supply zone at 1.0587, combined with the Quant AI indicator's bearish signal, validated the short entry. The stop-loss was placed above the supply zone, ensuring risk was tightly controlled.
Fundamental Catalysts
The EUR/USD downtrend was bolstered by fundamental factors:
Hawkish Federal Reserve Commentary: Persistent hints of further rate hikes by the Federal Reserve strengthened the U.S. dollar.
Weak Eurozone Data: Manufacturing PMI for the Eurozone missed forecasts, highlighting the region’s ongoing economic struggles.
Safe-Haven Flows: Geopolitical tensions encouraged investors to flock to the dollar as a safe-haven currency.
Trade Management
The take-profit target was strategically placed at 1.0420, corresponding to the next demand zone. This allowed traders to ride the trend while protecting gains by trailing stops.
EUR/JPY: Why Multi-Timeframe Confluence Yielded Winning Trades
EUR/JPY presented a textbook bearish trade setup this week, driven by both technical patterns and macroeconomic divergences.

Technical Analysis Breakdown
Bearish Structure: Similar to EUR/USD, EUR/JPY showed a break of structure (BOS) on multiple timeframes. The breakdown of support at 163.77 was pivotal, flipping prior demand into a strong supply zone.
Supply Zone and Entry: The pair retested the 163.70–164.00 region, a confirmed supply zone. The Quant AI dashboard’s bearish sentiment reading, combined with a sell trigger, added further conviction to short the pair.
Volatility and Momentum:
With a volatility reading above 56% on the dashboard, the pair showed significant movement potential, favoring active traders.
The bearish candlestick patterns near resistance enhanced entry timing.
Profit-Taking Zone: A demand zone at 161.00 was identified as a logical exit point, providing a high-risk-reward trade setup.
Fundamental Catalysts
Diverging Monetary Policies:
The Bank of Japan's dovish stance continued to weigh on the yen, but its effect was muted this week by increased risk-off sentiment.
Eurozone's weak economic data, coupled with geopolitical uncertainty, weighed on the EUR, exacerbating the pair’s downward movement.
Risk Aversion: A broad shift toward risk-off sentiment supported the yen’s relative strength against the euro.
Execution and Management
The short position capitalized on the high-probability rejection from resistance. Trailing stops were employed after the pair moved 80 pips in profit, allowing traders to secure gains while leaving room for extended moves.
NZD/USD: What Key Fundamentals and Fibonacci Alignment Revealed
NZD/USD followed a steady downward trajectory this week, providing a textbook combination of technical confluence and fundamental rationale.

Technical Analysis Breakdown
Fibonacci and Supply Zones:
The pair retraced to the 0.5880 supply zone, which aligned with the 61.8% Fibonacci retracement level, presenting an ideal short opportunity.
A bearish engulfing candlestick in the supply zone confirmed seller dominance.
Quant AI Dashboard:
Sentiment indicators flagged strong bearish sentiment, with sellers clearly overpowering buyers.
Volatility of 55.7% indicated ample movement potential, aligning with the active trend.
EMA and Dynamic Resistance: The price rejected the EMA resistance bands, validating the overall bearish structure.
Trade Execution: The sell signal at 0.5884, identified by Quant AI, offered an optimal entry. The take-profit target was set at 0.5810, just above the nearest demand zone, for a calculated risk-reward ratio.
Fundamental Catalysts
Weaker New Zealand Economic Data:
New Zealand’s trade balance figures disappointed, adding pressure to the kiwi dollar.
Declining dairy prices, a key export for New Zealand, further weakened the currency.
U.S. Dollar Strength: The Fed’s hawkish tone and strong U.S. economic data, including robust retail sales and job figures, underpinned USD strength.
Risk Management and Outcome
A tight stop-loss above 0.5900 ensured minimal drawdown, while the trade ran profitably, hitting its take-profit zone with minimal retracement.
Lessons from This Week’s Trades
The Power of Confluence: Combining multiple technical tools—such as supply and demand zones, BOS, Fibonacci retracements, and sentiment indicators—enhances trade precision.
Adapting to Fundamentals: Understanding the broader economic narrative is crucial. For instance:
U.S. dollar strength dominated due to hawkish Fed commentary.
Weak economic data in the Eurozone and New Zealand amplified bearish opportunities in EUR/USD and NZD/USD, respectively.
Quant AI Edge: The Quant AI indicator played a pivotal role in spotting high-probability setups. Its integration of sentiment analysis, trend direction, and volatility provided actionable signals for traders.
Risk Management: Employing tight stop-losses, scaling out of positions, and trailing stops ensured profits were protected, regardless of market fluctuations.
Key Takeaways for Next Week
Focus on Fundamentals: Keep an eye on upcoming economic events such as central bank meetings and key data releases, as these can influence major pairs.
Utilize Tools Effectively: Continue leveraging Quant AI for multi-timeframe analysis and enhanced trade confidence.
Patience Pays: Wait for confirmation from multiple indicators before entering trades. This week’s trades were successful because they adhered to a disciplined strategy.
This week’s trading on EUR/USD, EUR/JPY, and NZD/USD demonstrated the importance of combining robust technical analysis with an awareness of fundamental drivers.
By following a systematic approach and utilizing cutting-edge tools like Quant AI, traders can consistently uncover profitable opportunities.
Stay tuned for next week’s market outlook and analysis. Happy trading!
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