All eyes are on the dollar this weekend. But I want to look beyond USD, at pairs which are only indirectly influenced by the shenanigans in DC.
I am aware that certain events may trigger huge gaps in the weekly forex open, as they have in the last two weeks with CHF pairs. The lines on the charts below may be breached before I even have the chance to trade them. But I like them because right now they are at tradeable points. I currently have no open trades.
EUR/GBP – The two major European currencies provide reliable short term trends, usually after a break of one simple line. Only one scenario is shown below. Support is support until it no longer supports.
AUD/CAD – The commodity currency battle, near all-time highs. The 50% line of the latest move has a nice touch on it to make it look an attractive target. But the move was strong so I will short this with caution. CAD is suffering alongside USD because of its geographical proximity.
CHF/JPY – Which is safest? Most CHF charts have been one way traffic lately. You’ve either been following the trend or picking bottoms but this chart has been offering a defined trading range in the last month.
Most JPY and CHF pairs will be directly affected by US debt issues so I have chosen to omit them from this post. But I have lines on them too and of course I will look for trading opportunities.