Today, we have three great setups, which are quite similar to each other. Quite interestingly, as their correlation is usually not the highest.
Let’s start with the first one – USDCHF, where at the end of the year, the price broke two crucial long-term supports. The first one was the up trendline connecting higher lows since the beginning of 2018 and the second one was the horizontal support around the 0.971 – probably the most important price of the 2019. Breakout of those two, brought us a sell signal and the test of those two as a closest resistance brought us a confirmation. As long, as we stay below the orange line, the sentiment is negative.
As we said before, similar setup can be found on the other instrument – USDCAD. Here, on December, the price broke the long-term up trendline, connecting higher lows since 2017 and other support, almost horizontal one, connecting lowest prices in 2019. Breakout of those two is a negative sign and promotes a further drop. Here, we do have an additional fundamental background coming from the higher prices of Oil and Gold with the CAD being a commodity currency.
Last one something more exotic but also very interesting. EURPLN broke from the long-term symmetric triangle pattern after breaking the dynamic support connecting higher lows since 2015. In addition to that, EURPLN broke the horizontal support around 4.24. With all that, it seems that the polish currency will have a positive 2020.
This article is written by Tomasz Wisniewski, Director of Research and Education at Axiory
This article was originally posted on FX Empire
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