DailyFX.com -
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GBPUSD head and shoulders neckline re-test
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AUDUSD weekly tweezer bottom pattern
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USDCAD long term Fibonacci level at 1.3462
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EUR/USD
Weekly
Chart Prepared by Jamie Saettele, CMT
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-“EURUSD continues to hold up at the line that extends off of the 2000 and 2001 lows. The slope of this line is similar to the slope of the line that connects the 1995 (synthetic rate) and 2008 highs. A parallel extended from the 2000 low creates a channel so don’t dismiss resistance breaks on the daily (from long term support).”
-“EURUSD faces a big test from the top of the range and 200 DMA. A breakout would target 1.1811-1.2086.” The rate broke out but failed to extend higher and the weekly chart is left with a nasty bearish reversal candle at the 52 week average. Is this how the broader decline resumes or is a wider period of range activity in order? The latter seems more likely given the presence of the mentioned long term trendline support.
GBP/USD
Weekly
Chart Prepared by Jamie Saettele, CMT
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-The week that ended 8/28 engulfed the prior 6 weeks and may set the stage for a test of 1.4500 given the false break above the line that extends off of the 2014 and 2015 highs. The false breakout took place at the 52 week average, which is downward sloping and gives credence to a long term bearish view.
-A 3+ month head and shoulders top also completed in late August as well. This week’s rally may compose a re-test of the neckline.
AUD/USD
Weekly
Chart Prepared by Jamie Saettele, CMT
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-“A slope confluence pinpointed the May high, which keeps the broader trend pointed lower. A long term level to be aware of in AUDUSD is the line that connects the 2001 and 2008 lows, which is near .7100.”
-“The immediate picture is bearish. Range expansion objectives yield .7143 and .6902.” The latter level was nearly reached last week. The next long term area of interest is probably the 1999 high and 2004 low at .6741/72 but COT observations and a tweezer bottom candlestick pattern on the weekly chart indicate reversal risk.
NZD/USD
Weekly
Chart Prepared by Jamie Saettele, CMT
Automate trades with Mirror Trader
-“One can’t help but notice that an epic double top is possible with a target of .5898. That would trigger on a drop below .7370.”
-“A bearish wedge pattern has formed and yields an objective of .6607.” Look towards the mentioned objectives (.6607 and .5898). The wedge objective has been reached as has the 2010 low at .6560. The next level to be aware of is .60 (long term double top target).” Also be aware of the 2004 and 2006 lows at .5909/27 and the 1999 high at .5673.