We expect additional USD strength over the coming week but would caution investors to short at current price levels. We are expecting a pullback in USD pairs at the beginning of the week which should provide attractive short opportunities. We are looking at EUR/USD and AUD/USD specifically.
EUR/USD (Figure 1): This pair has broken below its descending triangle pattern which projects a target of below 1.26 over the coming days. We expect the pair to rally back to the 1.30 in the first half of the week which should provide an attractive opportunity to short the pair for eventual targets below 1.26
AUD/USD (Figure 2): We expect this pair to test the 0.9910 region to start the week and then rallyback to the 1.01-1.02 resistance zone. This rally should provide attractive short opportunities with eventual targets close to 0.970.
Stay tuned for updates on these trades. Good luck trading.
Figure 1: EUR/USD (Daily)
Figure 2: AUD/USD (Daily)
5/5 stars (4 votes)