These are the currency pairs that I am watching next week
for trading opportunities:
AUDJPY – Price came down to test 77.60 support on Friday and
it finished right on top of it. If I can see a transition of control from
sellers to buyers, together with strong sign of buying above support then I
will be going long. I will be extra cautious because of interest rate decision for
Australia on Tuesday.
AUDNZD – Friday saw a break below resistance at 1.0560 and
price closed below it as well. My trading plan is telling me that support has
been broken and I should be looking for opportunities to sell. If there is a
retrace back to 1.0560 area then I will be looking for opportunities to short
on multiple time frames. Just like AUDJPY above, the risk is high due to interest
rate decision for AUD.
USDCAD – Last Sunday I mentioned possible short opportunity
if this pair continues up to test 1.3280 resistance. The turnaround did happen
but not in any suitable trading setup according to my plan so no trade was
taken. On the positive side, price action during
the week confirmed that 1.3190 (dotted line from last week’s chart) is not a
valid resistance that I can trade from. I will remove this level from my chart
on Monday.
NZDJPY – This pair got very close to 73.00 support level on
Friday. This is a strong support level in my analysis. If price continues to
drop to hit this level then I will be looking for low risk high reward
opportunities to go long above support if I can see evidence of strong buying power above it.
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