Trade setups for the week ahead October 17, 2016

U.S. retail sales for September increased 0.6%. Despite holding September’s rate constant, a rate hike decision is still on the table. Meanwhile, the RBA’s Financial Stability Report reported lower rate cut bets sending the Australian Dollar soaring.For the most part, chart setups are remain relatively the same for the week ahead. I continue to remain bullish on the NZDUSD pair, but bearish on the U.S. Dollar against the other major pairs.

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NZDUSD 1-Day

I indicated previously about being the bid exhaustion on the NZDUSD pair after the September 6th peak. The bidding died off at the 0.749~ price level and quickly dipped below the defined resistance price level.

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NZDUSD 1-Hour

Moving over to the hourly time-frame, we see the similar setup. Discounting the position unloading upon market close, we see the same time of bidding activity die off replaced by a stream of offers. This is another sign of bid exhaustion for the week ahead. The next profit area is approximately 80 pips at the 0.7 whole number price level.

screenshot-at-oct-16-01-54-34
AUDUSD 4-Hour

AUDUSD has been ranging since July over on a daily time frame. Rather than attempting to trade a breakout, I’m looking into the 4-hour and 1-hour ranges. The market closed off at the higher end of the range signalling a possible sell-off upon next week’s market open.

Screenshot at Oct 16 01-59-38.png
AUDUSD 1-Hour

Similarly, looking at the hourly time frame, offers have been able to sustain outstanding bids dragging this pair lower. With the longer upper tails, we’ve seen higher trade settlements without sustaining the price level. For this reason, I suggest the current 0.7360~ zone is expected to hold up.

Stay tuned for USDJPY and USDCAD chart setups.

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