Image: Julia d** P** K****, Flikr (cc)
It’s topical to stick with the USD theme, where yesterday we were watching USD/CAD threatening to tuck back inside the bullish channel running in the direction of the higher time frame trend.
With the daily chart simply included again for context, you can see from yesterday’s price action on the hourly chart that there was a lower time frame re-test of previous resistance as support, giving multiple chances to get long.
The level has the added allure of being at that confluence of support formed by the intersecting trend lines that you can see.
Ticking through our MT4 platform‘s USD watchlist to USD/JPY, a chart we have been watching hover around its lows as the Fed lacked conviction.
Ah how the narrative, and most importantly price, can change so quickly!
As you can see on the current daily chart, USD has got its act together on the threat of impending interest rate hikes from the Fed and price has rocketed straight up to channel resistance.
If you’re REALLY keen, this is also the 50% retracement level from the helicopter money threat high.
I’m not really a fibs guy myself, and my USD bullish bias sees me leaning toward playing the breakout on this pair. A strategy that the USDX chart, still nowhere near resistance after getting the bounce off support, supports.
Plenty of room to reach for the next levels of resistance.
Happy to keep my long USD bias into NFP and these two featured pairs look like a good place to make a play.
On the Calendar Thursday:
CNY Manufacturing PMI
AUD Private Capital Expenditure q/q
AUD Retail Sales m/m
CNY Caixin Manufacturing PMI
GBP Manufacturing PMI
USD Unemployment Claims
USD ISM Manufacturing PMI
Take advantage of the market narrative on a Forex trading account with Vantage FX.
Dane Williams – @VantageFX
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