I am watching these three pairs for possible trade setups.
USDCHF at Range Ceiling
USD strength has been broad, including against the CHF. However, the CHF has been more resilient than some other currencies like the comdolls, despite the high-interest rate differentials between these currencies and the CHF. This is clearly due to the dampened risk appetite we are witnessing in the markets.
Having that in mind, any dollar weakness driven by fresh poor economic data may drive the USDCHF lower. Given that we have reached the top of the sideways range the pair has been trading in for around 5 months now. In addition to a rising wedge bearish reversal pattern and negative divergence on RSI.
Key levels to watch are the resistance of the sideways range at 1.0050-1.0070. If broken, we could see the pair push higher.
GBPCAD Major Resistance Ahead
This is definitely key broken support that could turn into resistance.
I will be watching this resistance for possible short trades, starting at 1.5735 to 1.3885. As the 200-day simple moving average is just around that area.
The rebound we have seen in the GBPCAD has been quite too sharp. Probably ahead of itself and can’t be sustainable over the short term. The RSI has been also overbought.
That’s why there is a good chance we see a downside correction.
Since this is a long-term resistance area, and also because the GBPCAD is a volatile pair, the resistance range is a bit wide. Hence, waiting for the right timing through a sell confirmation signal is key for this trade setup.
AUDNZD at Rising Trend Line
AUDNZD hit the rising trend lines for this medium-term upside trend. The trend lines coincide with a previously broken resistance area, which may turn to support now among 1.1165-1.1115.
The price is currently trading around this support zone. A good area to look for a bullish rebound. However, be careful of a breakout below that support as it may lead to further losses, where the next support is at 1.00.