Prior to each week, I scan through all possible pairs in my watchlist and see which ones are worth trading for the week ahead. This week is no different and here are some of the technical setups I’m watching at the moment.
The U.S. Dollar currently displays mixed strengths against several other major currencies in anticipation of September’s rate hike.
The New Zealand Dollar reached July highs at 0.73~ mid of August and has been shorted since. Currently in the Sydney session, NZDUSD opened higher, but downward pressure is expected to resume with a further break lower out of this consolidation. This is given as price stalled since reaching July highs failing to break any higher.
Similarly, AUDUSD follows a similar consolidation breakout lower. Despite opening higher during the Sydney session, downward pressure is resuming and this pair is expected to continue selling off with profit target at the 0.75~ price level.
Finally, the EURAUD pair is currently testing a major resistance zone at the moment with expectations for continued downward pressure. Despite remaining bearish on the Australian Dollar against the U.S. Dollar, The Euro is expected to be even more bearish in comparison to the Australian Dollar.