As DAX posted a major daily bullish pin bar, strengthened by the bounce from previous lows (important support) we think that the price will move higher over the next days. Thus, we are initiating a buy stop order, slightly above today's highs.
It looks like the pair is about to break from the recent consolidation pattern to the downside, thus we will be selling this pair. at 0.6640. Tight SL as always.
The USDCAD pair failed to post any bounce from the strong support in the 1.2960 and the latest consolidation looks like a flag pattern in the bearish trend. Thus, we would like to sell the possible breakdown and we are expecting a strong downward momentum, therefore only a tight stop loss will be used.
A bit risky - but it seems that the AUDUSD pair has held the previous highs, which is the current strong support. Thus, we are going long on this pair, with a very tight stop loss.
We think that this huge bearish pin bar will be followed by further selling and should the 2h candle close like this, we will be placing a sell stop order at 1.6765, with the stop loss slightly above the 50%fibo of the pin bar, while the target zone is near previous resistance/support zone.
The Loonie is holding strong today, despite risk-off trading elsewhere as oil is supporting the Canadian currency.
However, longer-time frames seem oversold and this could be a good day for traders to take profits from the recent rally on the Canadian dollar. The USDCAD pair failed to post a new low today and the CAD might start depreciating with other...
The EURCAD cross is now testing a major uptrend line. If this support fails to hold, we could see a steeper decline. Fundamentally, the euro might continue lower due to weak data and dovish ECB.
Thus, we would like to short this cross on a breakdown below the previous lows and trend line.
If the current consolidation phase is broken to the upside, we would like to enter a long position, with a small stop loss and a nice RRR. We think the NZD is overbought and might correct lower over the next days.
The cable has been stuck at the 200 DMA and it appears ready for a small bounce, after the latest sell-off as the pair failed to drop to new lows. Our preferred scenario is to go long at these levels, targeting 1.3720. the stop loss should be at 1.3450.
The EURCAD cross has managed to defend the 200 day moving average and looks ready bounce higher. Technical indicators are signalling oversold conditions and therefore a short squeeze rally could occur. Our idea is to go long now, with the stop loss at 1.5130 and profit target at 1.5530, where the 100 day average is seen.
The GBPAUD cross has been consolidating in a narrow range in the recent weeks and it appears to be ready to break down from this zone. Such moves are usually volatile and follow the side of the breakout. If the GBPAUD cross falls to 1.8140, initiate a short position, targeting the 100 day moving average at 1.78. Another strong support is at previous lows at 1.80...
As the yesterday's dip below the 200DMA was aggressively bought and the index closed in green, it posted a strong bullish pinbar, suggesting upside momentum could prevail in the next days. Therefore, we would like to try a buy stop order at 2,640 USD, targeting the 2,680 USD level. SL should be at 2,630 USD.
