Waiting for EURUSD Short at 1.3600; GBPUSD Short at 1.5895
- AUDUSD: While my small short missed its target by 8-pips (was looking to close trade from 1.0670 at 1.0592), it was closed out at breakeven for a net-gain/loss of 0-pips. I remain on the sidelines with this pair, though on rallies towards 1.0800 I will be looking to short.
- GBPNZD: The pair is closing in on its 2011 low of 1.8542. I'll be looking to sell a breakout as more easing from the Bank of England hasn't been priced into the GBP yet, in my opinion. I will then flip sides and look to get long around 1.8300 (exact level TBD).
- GBPUSD: The pair exploded higher today, trading at 1.5863 at the time of writing. The pair has traded in a descending channel since mid-October, with topside trendline resistance at 1.5895 and the 200-DMA at 1.5903. I will look to short in the 1.5895/905 zone, as it will be a tough nut to crack on first pass.
- EURCHF: I noted this week, "With the pair flirting with the 1.2100 handle, I'll be looking to buy on a dip below 1.2050, but closer 1.2030, the 2012 low. Reward/risk is high, given the monetary and political pressures on the Franc." I have initiated a small long EURCHF position at 1.2050, and I will add below 1.2030, as scheduled.
- EURUSD: I noted on Wednesday, "An hourly triangle is forming, with an explosive move higher or lower expected in the coming hours. A sustained move above 1.3320 could lead to a rally to 1.3600, and I will get heavily short at said level, given trendline confluence." Having clear the 100-DMA, the short-term pattern suggests a break to 1.3600, and I maintain my bias to short at this level.
- USDCHF: With the EURUSD surging (the EURUSD and USDCHF have held a -0.93 correlation since September 6), the USDCHF has dipped below 0.9000. With my forecast for the EURUSD to rally to 1.3600, I expect the USDCHF to fall to the 200-DMA at 0.8763. I'll be looking to buy at this level.
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