Last week, GBPCHF, CHFJPY and USDJPY all played out quite well. Yet another week that comes with various opportunities in the currency market. It is never short of signals, is it? The charts I have on my watch list for the week are NZDUSD, USDCAD, NZDJPY, EURJPY and CHFYPY.
This pair has been in an uptrend for a while and it had transitioned into a head and shoulder pattern within the past week. Just before the close of the week, it had broken the neckline of the pattern. Within the early market hours, any retest of the neckline would be a fine opportunity to go short this pair.
For close to 3 months now, the direction of USDCAD has gone way south without any hint of exhaustion from the bulls. It has been one of the simplest pairs to trade. For the past week however, it did not really add any more pips to its gains. The market structure has presented us with a symmetrical triangle. Will it break up or break down? The market is always right!
If currency correlation is anything to go by, then this pair is actually tracking the NZDUSD since both pairs have carved out a head and shoulder pattern. The difference between both is that the NZDJPY has not broken below the neckline. A break below would be a shorting opportunity.
It is always a delight for me to see a currency pair not moving much for a period of time. This is because the market provides a textbook price action structure in such times. The EURJPY has is also presenting us with a triangular pattern albeit not so clean.
This pair has been contained in an up channel for weeks. It is trending up neatly but weakly. Will it hold or break? It is a clear matter of wait and see.
My picks for this week are all the JPY pairs. I would belooking out for short opportunities on the breaks of respective supports.