I’m serving up a mix of short-term and long-term setups on the crosses this week, just in time for top-tier catalysts for these currencies on my radar.
First up is this short-term descending channel on EUR/NZD, with price currently testing the resistance. Bounce or break?
Stochastic is indicating overbought conditions, which suggests that bulls are exhausted from charging and could let bears take over from here. In that case, a move to the latest lows or the channel support around the 1.6650 minor psychological level could take place.
Then again, my one good eye is spying a bit of a bullish flag pattern, which is typically considered a continuation signal. With that, there’s still a chance for an upside break that could mark the start of a reversal for this pair.
If you’re bullish on the Aussie given how gold prices have been surging on safe-haven flows these days, here’s an ongoing short-term uptrend you can join.
The pair is trading inside an ascending channel pattern on its 1-hour chart and is pulling up from the climb, with the 61.8% Fib level lining up with the bottom of the channel and an area of interest.
Stochastic is already climbing out of the oversold region already, though, so bulls could be eager to push price back to the swing high or channel resistance. Keep in mind, however, that the lower-yielding yen could also draw some support if risk aversion extends its stay.
Last but not least is this long-term double bottom neckline break-and-retest on GBP/CAD’s daily time frame. I’ve been waiting for a chance to hop in the climb on a correction to the area of interest around the Fibs, and it seems that the pair is gearing up for a bounce.
A bullish divergence can be seen as stochastic made slightly lower lows while price had higher lows. At the same time, the short-term rising trend line around the 38.2% Fib already seems to be keeping losses in check.
The U.K. has a bunch of top-tier reports up for release this week, so I’ll be on the lookout for upbeat results to help me decide whether I should go long at market or not.
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