Potential Trade Setups Involving USD

Bears were very aggressive on AUD/USD recently. The pair has sold off heavily till last week. Now, it seems the sellers are slowing down, like they have lost their steam. It is possible that the pair may retrace to the major psychological level of .9100. Before restarting the downward trend, this level was the previous support area. It also confluences with the 61.8 percent fib retracement, which means it has a possibility of acting as resistance level in the future.

If you want to put your creative brain in work, try to analyze the future direction of USD/CAD. After being consolidated within an ascending triangle for the past couple of days, it seems the dollar traders are gathering strength in favor of a uptrend. If that happens, an upwards breakout may touch the psychological level at 1.0600. On the other hand, if the downwards breakout happens; the pair may go below 1.0400. Anything is possible at this moment!

NZD/USD is a bit easier to tell, at least easier than predicting USD/CAD. It seems this pair is due a new trend soon. After confining itself within a falling channel for weeks, the pair is making its way out of the channel, which is clearly visible in the 1 hour chart. If an uptrend begins, the NZD/USD may touch the super major psychological level at .8000. Stochastic is also showing such a signal as it is showing an oversold market. I’ll wait a few more hours to confirm the trend and if that happens, I’ll place a long order in my Alfa Trade account.

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