Scanning Forex for Upcoming Moves

Scanning Forex for Upcoming Moves

Which forex pairs are likely to move next?

Scanning Forex for Upcoming Moves
Scanning Forex for Upcoming Moves Getty Images

With ten forex pairs to look at and trade, deciding which forex pairs to focus on for a trade setup can be overwhelming at times.  However, if using a scanner type program, scanning for which markets are likely to make the next move gets easier. 

For example, the Multicharts Scanner below shows both the 60 and 240 minute timeframes for nine different currencies (AUDUSD, EURGBP, EURJPY, EURUSD, GBPJPY, GBPUSD, USDCAD, USDCHF, and USDJPY).  As shown in the third column, the USDCAD 60 minute chart has short volume divergence, the USDJPY 60 and 240 minute charts have short volume divergence, and the EURJPY 240 minute also has short volume divergence.  Plus, the AUDUSD 60 minute chart is indicating an oversold status on the Stochastics and has formed a pivot low.  Additionally, you can scan for ADX values, highlighted by the yellow box, to show which forex pairs are likely overextended on the ADX (value greater than 70), ie USDJPY 240 minute chart, or have formed a peak (indicating a retracement), ie EURJPY 240 minute chart.

Scanning Forex for Upcoming MovesThe AUDUSD 60-minute chart is indicating a potential oversold status on the Stochastics, which indicates a potential move up.  Additionally, as indicated in the last column, price is at the 240-minute ATR.  Looking at the charts, the 240 minute also has a potential hidden divergence forming, as well.  The combination of these clues are indicating that the AUDUSD is likely to move up to the ATR on the 60 minute chart (.7470).

Potential AUDUSD Trade SetupThe next currency is the EURJPY, which has a short volume divergence, with a stochastics that has been above 80 and a peak forming on the ADX (as shown below) on the 240-minute chart.  Again, this is indicative of a retracement on the 240-minute chart down to the ATR at around 130.00.  However, currently price is at the ATR on the 60-minute chart with a reversal candlestick pattern to the upside.  Typically, price bounces at the ATR and it will be important to wait for the bounce to complete on the 60 minute chart before entering the potential retracement or simply wait for the retracement on the 240-minute chart to complete before entering the uptrend move.

EURJPY RetracementThe USDJPY Stochastics on the 240 minute chart is indicating a potential overbought status with potential trend divergence on the 60 minute chart.  However, waiting for the trend divergence to complete on the 60 minute chart will also be critical to confirm the potential beginning of the retracement on the 240-minute chart.

USDJPY Potential Retracement

 

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