The market isn’t quite open yet, but yesterday was a pretty big down day in equities. Also, they’re mentioning on Bloomberg that the China trade deal might be delayed yet again. We might be looking for more risk-off scenarios, so I’ll keep that in mind this morning.
USD [L/N] – I’m a bit neutral here because it’s last 2 candles are down, but the most recent candle is showing signs of sellers losing out. I’m bullish because of what I just mentioned, but also because this is bouncing off of it’s lower trendline, and sentiment looks to be more risk-off. I’m cautious about this one, and I’ll only look to pair it against another currency if I don’t see another, better, bullish option
CAD [S] – This has broken through support a couple of times now, and over the last month-and-a-half, has made pretty clear lower lows and lower highs. It’s currently sitting at another level of support (which is, more accurately, a previous level of resistance), but if it can break through, as it’s looking like it can, I think this will be a great short option
Today’s Pairs
NZD/CAD – Long
CAD/JPY – Short
USD/CAD – Long
AUD/CAD – Long
EUR [S/N] – In it’s basket, this is still within that range it’s been trading in for a while, but it’s not really near any major level of support or resistance. The current candle is a down one, and it’s at a less-strong level, so really, I can see this going either way. I think I want to leave EUR alone for today
GBP [L/N] – While this has made some higher highs and higher lows, it’s still in that high base pattern. I think it’s primed to break out, but it doesn’t seem as though anything is going to actually happen until Brexit does. It’s getting close to that level of resistance at the top of the base, too, so I don’t think it has that much room to move. I think I’m going to continue to leave this alone, even though Maverick has taken a trade here. I’ll analyze theirs, and see if it’s something I would’ve been comfortable taking
JPY [L] – This has been in a low base for a while, and over the last couple months, I’ve been both bullish and bearish. Today, I’m pretty bullish because it’s at the bottom of that base and it’s current candle has a long lower shadow, suggesting buyers are winning out. That, coupled with the fact that (IMO) we’re in a risk-off environment, suggests a bull move in JPY
AUD [L/N] – This has been weirdly in a couple of ranges over the last couple of months. Looking at it’s most recent(ish) activity, it based for a while (low-base), but this morning, broke out above the high of that base. I’m cautiously bullish here, hoping for a follow-through before I’m convinced, but I don’t hate it to the up-side
NZD [L] – GBP, AUD and NZD, as far as what I thought, shouldn’t be making gains in risk-off environments, but that goes to show how trading isn’t an exact science. This is still making gains, and I’ve already made some pips in an NZD trade, so I’m bullish here. That said, I’ll have to find a good entry point, because there’s not a real tradable pattern showing in it’s basket. We’ll see how it looks against CAD and maybe EUR
CHF [N] – This has been making lower highs for a bit, but the lows were staying at one level. A couple of days ago, though, it did manage to push through that support, but not super convincingly. Since then, it’s had a couple of up-days, so I’m neutral here. I don’t want to take this long, and I’d like to see a follow-through before I take this short, so I’m going to leave it alone for now.