Setups in AUDUSD, USDCAD & GBPJPY
I’ve continued to focus the bulk of my trading on these three setups highlighted this week. Keep in mind we’re heading into a holiday weekend with the close of the month / quarter on tap next week. As such, we’ll want to remain nimble and reduce leverage heading into the close with thin liquidity conditions likely to fuel added intraday volatility. That said, these are the setups we’re tracking.
AUDUSD- Aussie turned at a key Fibonacci confluence at 7643/51 where the 61.8% retracement of the decline off the May high converges on the 1.618% extension of the advance off the 2016 low. A near-term correction seems to be underway and we’ll be looking for a move lower heading into next week to offer more favorable long entries.
USDCAD- Loonie finally mounted a rally off key support noted last week, with a break of the weekly opening range high shifting the focus higher. We’ll be on the lookout for a move lower to offer more long entries with key resistance steady at 1.3419/61.
GBPJPY- Key support at 158.30/48 held and although we’re likely to see more range bound action near-term, our scalp bias remains weighted to the topside while above this confluence support. Still favoring a turn higher with a breach above this week’s opening range high needed to validate the near-term reversal.
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---Written by Michael Boutros, Currency Strategist with DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.