Greetings Forex Fanatics! Here are a few chart patterns happening on the longer time frames that may be take worth looking at.
Our first chart is a weekly on the AUD/USD. A week or so ago, I put up a chart on the same pair as it was forming a rising wedge pattern. Rising wedge patterns tend to be a bearish signal as it shows sellers are less willing to let go of control of the upper range. Well, it looks like buyers are out of the market as the pair breaks below the lower trendline. Will USD momentum continue? If so, this pattern should be taken into consideration into your technical analysis for a longer term short position.
This pair has been range bound for pretty much all of 2008, and with recent weakness in oil and strength in the Greenback, we see the pair about to test 1.03 once again. Will the Greenback finally break back higher or is this another opportunity to short at the top of the range? With the trend of weakening employment in the US, tomorrow’s NFP may bring sellers back into this pair, buying up the Loonie with the quickness…
I don’t usually touch on this pair often, but with NZD/USD moving in a nice channel lower how could I resist! Playing channels are pretty clear cut and as I mentioned for USD/CAD, tomorrow’s US employment data may give this pair boost higher if we see weaker data. A return to the top of the channel could give the markets a nice opportunity to short and go with the trend lower.
So, no specific ideas tonight, but a couple things to think about when checking out these pairs. Let’s remember that the mother of all news events is out tomorrow, so be very, very, very cautious and think twice before putting in any orders around the US Non-Farm Payroll report. Again, the trend has been weaker employment every month, and with July posting two weeks of over 400K initial claims, last month may not be any different. Good luck and good trading my friends!