Chart setups to watch out for as USD stabilizes

The U.S. Dollar took a hit as the anticipated rate hike is rumored to be pushed further into January of 2016 since the Feds just isn’t ready to raise interest rates. While the U.S. is experiencing strong employment figures, all the other economic indicators remain fairly neutral. 

GBPUSD remains in a horizontal channel once again. I suspect that it will continue to trade in this ranging motion until the Greece bail out plan is sorted out.

GBPUSD 4-Hour
GBPUSD 4-Hour

Regardless of how the Greece bail out plan plays out, this is a good set up for a rule based entry system. The longer the price consolidates, the greater the breakout move. The rule based entries are quite simple. You would sell in the upper range boundary and buy into the lower range boundary. Furthermore, you would also keep an eye on the breakout move and enter long short positions accordingly.

EURUSD 12-Hour
EURUSD 12-Hour

Recall yesterday’s post when I briefly touched upon the EURUSD pair. This pair is currently at a standstill as shown on this 12 hour time frame. Today would be the second day in which price failed to break new highs showing signs of exhaustion. The price is currently consolidating in a wedge mainly fundamentally driven from the Greece bail out talks.

USDCAD 1-Hour
USDCAD 1-Hour

USDCAD is currently in a downwards channel, but it looks more like a correction over on a longer time frame such as the daily. I would advise selling heavily into this pair especially given the rate hike anticipation is still on the table. The devalued Canadian Dollar isn’t boasting the Canadian economy and may just face even greater devaluation. Regardless of whether the rate hike occurs or not, this is an overall uptrend and so I would be looking to enter a long position on the lower boundary touch.

EURJPY 12-Hour
EURJPY 12-Hour

Another pair consolidating after heavy selling from May to July. For the EURJPY pair, we are looking at the downwards pressure existing at the 139.93~ to 141.09~ range as this represents a multiple touch throughout the June trading month. As price fails to break out of this zone throughout zone, I expect another touch and exertion of downward pressure especially after the Euro rally. It will be a mix of technical trading along with buyers closing out their long positions for the move for the past six days.

These are all the chart setups for major pairs for now. Stayed tuned for the chart setups crosses and exotic pairs.

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