Monday, May 29, 2017 is Memorial Day so be prepared for significantly lower volumes on U.S. Dollar pairs. Nevertheless, two pairs still remain in focus for this week.
AUDUSD is my main pair of focus especially with the significance of this week’s bearish red candle open.
Over on our half-day chart, the last 12-hour bar hit a daily resistance level and held up. Today’s bearish open signals a strong potential for a further sell-off momentum.
Over on the lowest time-frame I’m going to go, current selling pressure is trying to break out of the open of the previous inside bar. The inside bar marks a point of consolidation and we would be looking to break-out lower of the consolidation range.
USDJPY is in an interesting place at the moment. Over on the daily time-frame, it looks like its in a retracement before a further sell-off. However, this doesn’t look like it will be happening given that it has been consolidating in a week so far. If traders are loading up a short position, it’s not causing much impact. Nevertheless, this isn’t a pair that I would consider readily tradable at the moment due to Monday’s holiday.
These are currently the only two pairs I’m really watching at the moment with an entry in AUDUSD. Stay tuned for more trade setups at the end of Monday night. In the meantime, ECB Draghi is expected to speak at 9:00am.