Last week ended with the Consumer Price Index meeting the 0.3% expectations while initial unemployment claims rose slightly to 260K. Nevertheless, the U.S. Dollar continues to display strength upon the recent market open.
First off, the USDCAD pair finally broken up above daily consolidation I indicated about two weeks back.
The daily resistance line was re-drawn to accommodate July 10th break-out and reversal back into consolidation. Current plan is to go long with a stop just under this level.
Over on the hourly time-frame, this pair didn’t experience any long position close-outs after the 8:00 am Canadian CPI and Core Retail Sales disappointment. Market opened Sunday 5:00 pm New York time without any gap downs nor has it experienced any selling pressure at the moment. I will be prepared to ride this trade up trailing my stop tighter too.
This is currently another trade that I am currently in. Unlike the USDCAD long, this is a rather short term trade shorting the Australian Dollar off of a possible relative high. Looking over at a longer term time frame, AUDUSD is still ranging so I have decided to keep trades within in this range relatively short term with multiple close-outs and re-entry.
Speaking of ranges, USDJPY is also ranging for nine days with today being the tenth assuming it holds up. Switching over to a lower time frame, I have a bit of mixed sentiment with this pair.
Most recently, we’ve seen a bid exhaustion where price reached the previous high and failed to break higher. However, I remain relative bullish on this pair, but market sentiment is rather neutral at the moment. At the moment, I have decided to monitor this pair as the market sentiment becomes more clear.
Finally, I continue to remain bearish on the NZDUSD pair. Looking over at the fractals, this pair just made a higher low for a temporary bullishness. Currently, I have two possible price zones, 0.7167 and 0.7179, for another potential short opportunity.