Yahoo Finance Three Sweet Setups on the USD
We already had GDP and Manufacturing production from the UK and we are waiting for the Rate Decision and Statement from the ECB and CPI from the US. Both of those events can rock the EURUSD, which can have serious consequences for the whole FX market.
From the technical point of view, the main pair is in the positive territory. We are above the neckline of the inverse head and shoulders pattern, which gives us a buy signal. Yesterday, the price met the first target for this formation so a 38,2% Fibonacci. The new buy signal will be triggered, when the price will break the 38,2% Fibonacci and the sell signal will be triggered, when the price will break the lower line of the wedge pattern (red).
Next instrument is the USDCHF, which does not want to go down, despite an excellent bearish setup. The price is currently testing the ultimate resistance created by a few bearish factors being in the same area. If the price will not bounce from this level now, the great bearish chance will be wasted. Price closing a day above the black line will be a signal to go long.
Very clean and simple sell signal can be found on the USDJPY. The price created the head and shoulders pattern. Yesterday, USDJPY broker the neckline of this formation (red) along with the yellow horizontal support. Today, we are bouncing from those areas after testing them as the closest resistance. As long, as the price stays below the yellow area, sellers have bigger chances for success.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
