From risk-on to risk-off, it seems like market behavior is changing day to day. Investors struggle to pick a directional bias for major pairs, equities and commodities due to uncertainty in global inflation, economic crisis and a war in eastern Europe. Having said that, here are 3 pairs worth taking a look at this week that are set to make big moves in the next several days.
GBPCHF settled at a triple bottom on the 1D timeframe. If price holds up at this level, it is likely that we'll see the pair up at the 1.22770s where there is clear resistance. Unless conditions become worse in Ukraine, the pair could see some strong bullishness after hitting support. The pound closely trails the behavior of the stock market and will bounce if the market does.
Watching this pair is like watching the battle of commodities; hard swings on both sides make the losses and wins that much bigger. On this timeframe, the pair hit a golden cross and is now testing a significant resistant trend line. Institutional interest is high for both currencies although Aussie saw a huge rise in long contracts. Tomorrow, AUD's cash rate is expected to remain the same at 0.10% while CAD's jobs numbers are expected to be significantly less than last month's.
When weighing these two factors as which one is more or less dovish than the other, it can be hard. This week may be in the buck's favor as investors expect a lower change in employment which won't be reported until Friday. Retail is mostly short on this pair, although it keeps making higher highs. So, AUDCAD looks bullish from a directional and institutional standpoint this week.
The thing about this pair is that regardless of global conditions, the dollar prevails over the yen. Due to monetary policy and sentiment, USD is inherently stronger. And after last week's small retracement, the uptrend continues. There isn't a lot of technical patterns to look at other than the strong uptrend in the past month. USDJPY has over 1.5% of room to move back up to the highs (125.110) and a 1% move down to support (121.310), so it's still considerably better to stay long on this pair until the direction changes.
Just before the scheduled shutdown at 12:01 am on Sunday, Congress voted to extend the deadline for another 45 days. Yields jumped higher to above 5.1% which has remained elevated for some time. As we enter an historically bullish month for the indices, here are some setups on dollar, gold and index setups EdgeFinder Analysis […]
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Hi, I’m Nick! I am the founder of A1 Trading, market analyst, YouTuber, and creator of the EdgeFinder software tool. I caught a huge winner on USoil with the help of the EdgeFinder! In this article, I’ll walk you through my thought process behind the trade and how I found this crazy runner! Finding My […]
