Forex markets are on the move, if you are looking in the right places. These are the three pairs you should think about trading now.
Forex: Pairs that you should take into consideration
You don’t have to wait for trading opportunities to happen — you can make them if you know how. No, I am not talking about market manipulation nor am I talking about risky tactics for scalping. What I am talking about is this: if the market you like to watch is sleeping, the asset you prefer to trade range bound, go and look for a new market. You know what they say, there is always a bull market somewhere, savvy traders know to go looking for them. This is a quick look at three forex pairs set to make big moves in the next week; you should consider them for your next trade.
The USD dollar has broken out of trading ranges with many of the worlds leading currencies and the Indian Rupee is not immune. The pair has been in a an uptrend since early December 2017 and that trend is accelerating. Most recently the pair formed a bullish consolidation near the 67 level and that consolidation has been confirmed. Their price has broken out to the upside and is supported by the indicators. Both MACD and stochastic are pointing higher following bullish crossovers and are consistent with higher prices. Based on the magnitude of the first leg of this rally, about 2.00, we can expect to see it continue drifting upward until reaching 69.00. This week the US is expecting CPI and PPI data which could easily spur further strength in the dollar.
The USD has been moving up against the Turkish Lira since the fall of 2017. This move is driven by unstable conditions in NATO’s southeastern member and has accelerated on strength in the dollar. The move is supported by the indicators; both are bullish and convergent with the current high, although there is sign of resistance. The 4.300 level is consistent with a high set last year and may contain prices over the next few days. A break above this level would be bullish and could go as high 4.500 in the near term.
The Swiss Franc is falling out of favor not so much on weak data (weak data helps) but on risk-on appetite within the market. This means traders are turning to other currencies, like the Canadian Dollar. The Canadian economy still faces some hurdles but the outlook is good. NAFTA is about to be re-affirmed with new details and trade is expanding globally. The CAD/CHF is in a strong uptrend and quickly approaching a resistance target but still far enough away to provide a nice opportunity for traders. The indicators are bullish but diverging so profits should be taken at the resistance target of 0.7915.
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