NZDUSD has ripped into the confluence of long term downward sloping channel resistance and short term upward sloping channel resistance. I’m interested in the short side IF we see some reversal evidence over the next 2 days (rest of the week). A drop below the high volume level from RBNZ at .6862 would be an early sign of a reversal.
NZDUSD 4 HOUR
USDCAD traded to its lowest level in over 2 years on Monday before reversing higher. Price is currently slightly positive on the week so a weekly reversal is a possibility. The top side of the trendline from the 2017 high was support this week, just as it was in September. Proposed near term support is 1.3030.
USDCNH is working on a weekly reversal from a well-defined level. The level in question is the 61.8% retrace of the rally from March 2018 and the lower parallel of the fork that originates at the September 2019 high. The chart below shows ‘J-Spikes’ at 200 day lows/highs. This is an indicator/signal I’ve long used to identify turns. It’s a key reversal with a volatility filter. Anyway, the first bullish one since the 2018 low triggered on Monday. Near term focus is on 6.71…then reassess.
GBPUSD 4 HOUR
Cable reversed lower from channel resistance today. A 4 hour volume reversal triggered in the process (see below). I’m looking lower towards the well-defined 1.3005 as long as price is below today’s high. Proposed resistance is the high volume level from today at 1.3262.
BRITISH POUND FUTURES 4 HOUR
USDTRY broke channel support today. The underside of that channel is now proposed resistance near 8.0325. Price could bounce from the current level (10/21 low) so I’ll leave a standing order to short 8.0300. The next level on the downside is 7.2700-7.4000 (May high and resistance in August).
11/10 – How about that timing?! After tagging the long term parallel, USDTRY dropped over 5% on Monday…it’s largest decline in over 2 years. 3+ month channel support has held. I favor going with weakness on a break of the channel. Possible bounce levels are 7.7790 and 7.3950.