Pairs to observe
Aud/Usd, Nzd/Usd and Usd/Cad
So as expected the commodity dollars retraced today. The Nzd, Aud and Cad retraced further against the Usd than we expected. They are sitting at critical levels now, I suspect the fundamentals tomorrow will have a big impact on these pairs. Both the Usd and the Cad are expecting fundamental announcements that can move these pairs drastically. If the australian takes out the low at 1.0193 than we expect this pair to retrace further down. If support holds and breaks the counter trendline we can anticipate a strong rally towards the north. Nzd shows a similar picture, its currently sitting at support levels and any breach below 0.7752 can cause this pair a much larger move south. The Usd.Cad is sitting at crossroads, it had a really strong upwards momentum today and if bears do decide to take over control theyll need to take out 1.0073 before a strong move towards the south begins. If the bulls, however decide to take control theyll need to take out 1.0269 to push this pair upwards. tomorrow will be a crucial day for this pair, we shall see who wins control in a battle between the bears and the bulls.
Aud.Jpy and Nzd.Jpy
Aud.Jpy and Nzd.Jpy are currently coming to a halt with their retracement. Aud.Jpy is currently sitting at strong support levels, and this level holds, a counter trend line break might show a strong bullish momentum upwards. Nzd.Jpy is showing a similar story, if supports holds expect a nice bullish momentum here.
The cable is an interesting pair. It is currently trading sideways in about 350 pip channel. Currently its on its way down, if you missed shorting this pair at the trendline break, there is another opportunity coming up as it is currently retracing. We can expect this pair to climb up to 1.5570 area before it decides to drop. Be cautious at putting ur target beyond 1.5400 area there is strong support at this level. Never the less a nice counter trend line break might justify a short trade.
Gold and Silver
Gold and silver behaved as expected today, they both found support at previous resistance levels. The bulls in gold are currently after 1644.66 level before a possibility of a deeper retracement taking place. silver is currently lagging behind gold but we can see the bulls slowly taking control of this metal. The bulls are after the high of 30.2254.
Eur/Nzd, Eur/Aud and Eur/Cad are all still going south dont be afraid of shorting these pairs after every retracement