The chart patterns going into the trading week are mixed indicating indecision in the market bias. We expect the markets to be range bound with the possibility of further risk rally. We are looking at the following pairs and will wait to see the market bias or indicated important levels to be reached before initiation any trades.
USD/CAD (Figure 1): This pair bounced off the declining channel bottom and its 61.8% Fibonacci support level last week. We expect this level to remain as strong support the coming week and will be looking to buy pullbacks against the lows formed last week. We expect the pair to rally to the 1.0160 level to a minimum with a break above indicating a move back to 1.0250.
USD/JPY (Figure 2): This pair is coming up against its 78.6% retracement level, horizontal and trend line support in the 78.20 region. We will be looking to go long on support in this region with stops below the lows at 77.60 and targets close to 80.
USD/SGD (Figure 3): This pair is also coming up against trend line, 78.6% Fibonacci and horizontal support in the 1.2450 region. We will be looking for signs of stabilization to go long with targets close to 1.2650.
We will update you on any positions initiated.
Good luck trading.
Figure 1: USD/CAD
Figure 2: USD/JPY
Figure 3: USD/SGD
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