Equities remained strong yesterday, but failed to break the high of the previous day. Price seems to be stalling out at the resistance level from back in September, but on the other hand, it’s formed a pretty clear upside-down head-and-shoulders pattern, which suggests price will continue to push higher. Futures are up already on the day, though not much, but I’ll still go into my analysis with a slight risk-on sentiment.
USD – L – This has pushed a bit higher and lower on the day, but is sitting at it’s open — which is also right near a pretty strong support level. If price does drop today on equity strength, I don’t see it dropping that far. If equities turn out weak, I’ll revisit this to the upside, but I’ll leave it alone for now
CAD – L/N – This spiked again today, and is up for the 4th day in a row. This has been susceptible to large wicks and small bodies, so I’m cautious here, but if it does continue to push up, I’d like to capture some of that move. It’s already pulled back a good amount off of the day’s highs, so that may present an opportunity, so I’ll take a look, but I won’t chase
Today’s Pair
EUR/CAD – Short:
This looks great on the daily chart. It’s down a good amount, sitting right at the support level and there appears to be a lot of room between this one and the next. I’ll run the numbers here and maybe take 1/2 position
EUR – S – I thought maybe there’d be opportunity here yesterday, but price pulled back for most of the day and ended up closing near the day’s lows. Today, it’s down quite a bit, and sitting on a pretty major support level. It would have to push a bit further down before it looks like something I’d like to get in, so I’ll hold off for now, but I’ll keep an eye on it
GBP – N – This is still basing and sitting right at it’s open with fairly large upper and lower shadows. I’ll hold off here
JPY – L – Price is technically still within it’s base, but it’s sitting near the bottom. It has relatively small shadows but is at the open. I don’t want to short this here, as it’s sitting on a pretty strong support level, but it doesn’t look like it has much strength right now either. Similar to USD, I suppose I’ll take a look at this to the long side if equities end up dropping today
AUD – N – This is rallying for the second day in a row, but this pushed up so slowly over July – September, that there’s a good sized resistance area from back then that this is sitting near. It’s also sitting at the 20MA which as just crossed below the 50. Even if equities are weak today, I don’t really see this pushing up much more than this. I’ll hold off for now and maybe revisit this afternoon
NZD – N – This spiked down overnight — that push down, I think, is the move I traded, but has since rallied back to it’s open (which is at a pretty strong resistance level). Even if this does push down again, it has a long way to go to break the day’s lows. I think I’ll leave this alone for this morning
CHF – N – This didn’t hold on to it’s strength yesterday and ended up closing down. Today it’s down quite a bit already, and is sitting on some pretty strong support. I’ll leave this alone for this morning — I don’t think it has much more momentum behind it.