Hello everyone, I hope you’re having a wonderful weekend and ready to smash the markets this week! We have some good potential trades as we head into market open..
DXY
We’re off! You cannot make this stuff up – it’s like reading a textbook. The double-top pattern completed, bang on the longer-term 50% retracement and now we’re off to the races. This EOW volatility is key as we head into this week.
AUDUSD
Look for shorts to the bottom of the range, but be wary of the trendline..
EURUSD
EU didn’t quite make it to the next resistance area. As long as this USD strength continues, look for shorts to 1.1400.
GBPUSD
As usual, similar story on the Sterling. My pick is GBP over EUR just purely from a structural technical analysis POV.
USDCAD
USDCAD found some strength after a lengthy retracement. Given CAD’s correlation with oil, we recommend short-term strategies on UCad for now.
USDCHF
Previous pattern has completed so we can remove it from the chart. Now, we expect further upside. As long as USD-strength persists, we would expect to see 0.8400 over the coming months.
NZDUSD
NZD teased the market by approaching 0.6000. I’m not going to lie, even I was contemplating if I was wrong. I do not think the kiwi is worth 60c at this stage. Structurally, the chart is looking good for a short. We’ve now established a 5th point on the longer-term wedge and my expectation is to look for a break of the short-term trendline, and go short toward 0.57-0.58.
USDJPY
USDJPY is heading back into “that zone” again so keep your eyes on it, and also the headlines.
XAUUSD
Now, obviously, the USD is driving movements at the moment. Gold has pulled back so look for the 4,400 area to see what happens. It will only be worth buying if the USD strength eases.
XAGUSD
Interestingly, silver seems to be less attractive. Usually, silver is more appealing from a technical perspective. Not this week – we’ve got that same weakness, but we could be going as far as 56.0.
UK Oil
Still the talk of the town. We’re looking bullish as of the weekly close. However, be aware that over the weekend the US has struck a deal with Venezuela for oil (among a few other headlines), so let’s see how oil reacts when the market opens tomorrow.
Disclaimer
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