Thursday, January 19, 2012

Forex Pairs to observe

Pairs to observe

some nice rallies in the market today it looks like a lot of pairs are retracing on higher time frames. The underlying fundamentals haven’t gotten better for the euro, so I assume the euro and surrounding neighbours will continue going south against other pairs over the medium to long term, unless something changes drastically. I am currently looking at 5 pairs.

Nzd.Usd

The new Zeeland dollar has been my favourite currency to trade over the last little while. We have seen Nzd.Usd moving aggressively towards the north. This pair is currently retracing towards support area around 0.7975 if support holds we will be anticipating a continuation with the bulls. Be very careful if this pair breaks the trendline it might retrace to deeper levels on the daily. Keep in mind this pair has completed its first bull fib swing off the daily and is due for a retracement soon.
Nzd.Jpy

similar story unfolds here. This pair is also retracing at the moment, we can anticipate it to find support around 61.00-61.35. if support holds a nice counter trend line break might justify a nice long entry.
Aud/Nzd

We have been monitoring this pair closely. On Sunday we were looking for short opportunities and we had a nice entry yesterday around 1.2992 which we took down for most of the move. Currently it found support on the daily. As a matter of fact there is massive bull crown that formed and it is currently sitting around the same area as the left tip. If support holds we anticipate this pair to continue its strong move north. If support doesn’t hold we can see this pair drop another 150 pips towards lower level of support at around 1.2800.
Eur.Cad

This pair had a nice rally upwards and is sitting at critical point right now. It is meeting a downward trend line and is currently sitting at strong resistance levels. If that isn’t bearish enough it is also currently breaking the counter trend line ready to u-turn. We anticipate this pair to u-turn and head south. There is a really slight chance it will break through resistance and move further north, if this happens and takes out that high we won’t be shorting this pair.

Usd.Cad

This is a interesting pair to follow, over the last couple weeks it has been going back and forth between strong resistance and strong support. Lately there has been more pressure being put by the bears and is currently on its way down. If this pair breaks the low at 1.0075 area we will anticipate the bears taking control of this pair and driving it further down over the week to come.

There are some fundamentals coming out tomorrow regarding the dollar which can influences the markets tomorrow, so please take that into account if you decide to enter the market.

1 comment:

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