Recap of the previous week.
The past week was a really good one as the forecasted pairs moved just as expected. Both AUDUSD and AUDJPY broke above the resistances of of their respective wedges. The bulls made some good moves before retracement set in for AUDUSD and reversal set in for AUDJPY. NZDCHF stayed within the ascending channel for a major part of the week before the final break of support.
It makes it into this week as well.
The charts in focus for this week are USOIL, AUDCHF & NZDCHF.
This commodity has made massive gains after seeing the lowest of lows in the month of April. However, the bulls have paused from June till now so consolidation has set in.
The consolidation has created a rising wedge pattern and crude oil is comfortably seated within the pattern. Be on the lookout for the breakout that is imminent.
A break of the support or resistance will determine where the crude oil is headed next. Be cautious of false breaks.
AUDCHF since June has been trading in a diagonal upwards structure but it made no significant bullish moves. The structure comes in the form of a bear flag and before the previous week ended, support of the flag was breached.
Below was my outlook for NZDCHF last week.
“This pair has also been one that has been weakly bullish for the most of this month. It has made no significant move and is currently trading in an ascending channel.
NZDCHF isn’t worth trading especially on higher timeframes as long as it remains within the confines of the channel. Be on the lookout for a break up or break down.”
Currently NZDCHF has broken below the support of the channel and the bears are in the lead. A further break of 0.6107 will prompt more bearish strength.
I wish you a profitable trading week.