Forex Update – January, February & March 2020

AUDUSD – Daily Chart

AUDUSD has recently closed above a long-term bearish channel, signalling that price could move higher. The bearish moving averages are becoming more bullish and could cross bullish – confirming the potential upside. Price action has formed a tight bullish channel.

Buying opportunities may exist around the moving averages, around the previous bearish channel resistance area (as support), around the newly formed channel support area and around the horizontal levels at 0.6765 and 0.6705. A bullish move could be rejected or reverse around the horizontal resistance levels at 0.6925, 0.7070 and 0.7190.

CADCHF – Daily Chart 

Price has been very choppy and indecisive. The moving averages have been crossing frequently and are moving sideways – confirming the market indecision. A key horizontal resistance level at 0.7620 has been tested a number of times. Another test may see the resistance broken and a bullish move higher on CADCHF.

Trading opportunities could exist around the identified horizontal levels at 0.7185, 0.7305 and 0.7375. If price tests the horizontal resistance at 0.7620, CADCHF may move higher.

EURAUD – Daily Chart

The EURAUD has been forming a series of lower swing highs and the moving averages have crossed bearish, all suggesting that price could start down-trending.

Selling opportunities may exist around the bearish moving averages, around the trend resistance area and around the horizontal resistance levels at 1.6305, 1.6405 and 1.6620. A bearish move could find support around the horizontal support levels at 1.6015, 1.5915, 1.5705 and 1.5375.

EURGBP – Daily Chart 

EURGBP has been bearish and has swung below the recent consolidation area, signalling that price may start down-trending. The EURGBP is now in a retrace phase. The moving averages have crossed bearish and are widening – confirming the potential downtrend.

Shorting opportunities could exist around any of the key Fib levels, around the trend resistance areas, around the bearish moving averages and around the horizontal resistance at 0.9065. A bearish move may find support around the horizontal support levels at 0.8500 and 0.8300.

EURUSD – Daily Chart

Price continues to downtrend within a large bearish channel. The moving averages are bearish and steady, signalling that the downtrend could continue. EURUSD could possibly start ranging between 1.1000 and 1.1185.

Trading opportunities may exist around the support and resistance areas of the range and if the EURUSD moves out of the range (break-out trade). Opportunities to go short may exist around the longer-term moving average, around the range resistance area, around the channel resistance area and around the horizontal levels at 1.1395 and 1.1430. A bearish move lower (or break to the downside) could find support around the recent lows at 1.0900 and the channel support area.

USDCAD – Daily Chart

The USDCAD continues to be choppy but move within a bearish channel. The moving averages are slightly bearish, suggesting that the downtrend may continue.

Selling opportunities could exist around the moving averages, around the bearish channel resistance area and around the horizontal resistance levels at 1.3340, 1.3530 and 1.3640. A bearish move may stall or reverse around the channel support area and around the horizontal support levels at 1.3145 and 1.3225.

USDSEK – Daily Chart

USDSEK recently swung below a bullish channel. Price action has since formed a tight bearish channel, suggesting that the USDSEK could start down-trending. The moving averages confirm the potential downside – they are becoming bearish.

Opportunities to go short may exist around the tight bearish channel resistance area, around the previous bullish channel support area (as resistance), around the dynamic resistance of the moving averages and around the horizontal levels at 9.5300, 9.6650, 9.7305 and 9.8310. A bearish move could find support or reverse around the bearish channel support area and around the horizontal levels at 9.2355 and 9.1245.

USDSGD – Daily Chart

Price is down-trending within a bearish channel. The moving averages have just crossed bearish, signalling that the downtrend may continue.

Shorting opportunities could exist around the channel resistance area, around the bearish moving averages and around the horizontal levels at 1.3555 and 1.3670. A bearish move may find support around the channel support area and around the horizontal support levels at 1.3510 and 1.3455.

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