The correlation logic for the AUDUSD and NZDUSD played out perfectly well in the past week, whereas EURUSD and AUDUSD broke through the marked resistance levels as anticipated. It was a fairly good week and I’ve put my interest on these pairs on hold as we transition into another trading week. I’ve added another commodity (silver) to my watchlist and this is the first time it will be making it into the weekly charts in focus.
The charts in focus for this week are USDCHF, XAGUSD and USDJPY.
Two weeks ago, I noted that I’ve set this pair aside because it was developing a weak uptrend. At the time, it wasn’t well formed but it took the whole of last week to validate the expected structure. It really didn’t take long enough for USDCHF to pick my interest again. From the 4-hour timeframe, we are presented with an up channel. Up channel resistance is smooth as opposed to up channel support which is slightly rough and “wicky” from the lows.
From the daily timeframe, I will treat the up channel as an extended bearish flag for the mean time because the main trend from early march this year is down. I will be expecting a break to the downside. If the tight ranged uptrend continues I will go back to observation until another prompt. It must be also noted that the USDCHF tends to be a difficult pair to trade so I will approach it with caution.
Between October 2018 to November 2018, silver found resistance at the 14.89 zone; it was tested thrice, two exact and one rough. Currently this commodity is back again in this zone with almost 5 touches, of which three are exact. Market has now found support at the same 14.89 zone but a strongly bearish candlestick sits on it. To break or to hold is a matter of timing and waiting. I would be much more interested in playing the break though.
The week ended on a fully bullish note for this one. 112.15 has currently emerged as a strong price of interest. It has restricted price a lot of times and price has also broken free from it only about a couple of times. The 112.15 has acted both as strong support and strong resistance all before. It is acting as resistance at this moment. Now, it is a mere game of questions like, will resistance be able to push prices down? Or will price be able to push through resistance?
I wish you a profitable week!