Cad.Jpy & Nzd.Jpy
Currently these two pairs are playing a game of support and resistance. Both pairs are currently experiencing sideways movement. The set up is quite simple; I’ll be looking for a break out towards the north before I decide to go long on these pairs.
Eur.Usd and Usd.Chf
Eur.Usd along with some other pairs is showing choppy moves lately. I’m always intrigued by these type movements because it shows the markets are not sure which way to go and this provides a certain challenge to trading these pairs. The bulls want to go one way, the bears the other and we end up with a mess. Currently the bears are trying to complete the bearish crown on the 1H with a target of 1.3172 with a major low around 1.3155 area. This pair should find support around the 1.3255 area and start going back up. Scenario 2 will be that this pair will find support around 1.3200 area and move back up towards 1.3275 and if it fails to break above it, it will u-turn and go back towards 1.3200. Either way, proceed with extreme caution in trading this pair. Usd.Chf is sitting on the 0.9100’s support area with some sideways movement. This area has proven in the past as strong support so it will take a lot for the bears to move beyond it. Therefore im anticipating support to hold and this pair to rally north towards the top of the channel around 0.9250 area.
Aud.Usd has been trading sideways for a while now and just made a new low. A key thing to note here is that this pair is slowly breaking out of the channel towards the south so we might see a further retracement. The fib target of the bear crown is 1.0595 so proceed with caution around this area. The bulls do have a high probability to rally it above support and continue its move towards the top of the channel at around 1.0800. I would wait for a nice bullish formation around 1.0630 area before considering going long.
This is another interesting pair to observe at the moment. The bears are on their second fib swing on the 1H with a target of 1.5715. There is strong support around 1.5727 so it’s possible for this pair to find support there and u-turn towards the north.
Keep in mind there are some fundamentals coming out tomorrow that can impact these pairs. So proceed with caution.