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.
The dollar flew higher last week as a result of resilient economic news along with a higher PCE than expected. Now the DXY has reached a decision point in price action. This week's NFP will help determine the sentiment around the potential June rate hike. Here is what we are looking at: EdgeFinder Analysis USDCAD […]
Considerably dovish news from central banks in the US and New Zealand has caused a major stir in the markets. Governor Orr and Vice Chairman Powell both released some reassuring news for the economy in the long term. But what does this mean for USD and NZD? EdgeFinder Analysis GBPNZD is a pair that should […]
As we trade into a broad news week covering the economic status of multiple countries, there are several scenarios we should consider. Although it is impossible to predict the future, we can at least prepare for the news events set to come this week for kiwi, dollar and the pound. EdgeFinder Analysis GBPJPY still maintains […]
