Trade view /
07 October 2016 at 7:14 GMT
A solid breakout of the bullish ascending triangle pattern. The next resistance is seen at 97.61 (161.8% extension from the 94.05-96.25 move) with the measured move higher at 98.47. We have the US Non-Farm Payroll release so there has to be a mild case for caution but many USD pairs are breaking formations (EURUSD and AUDUSD breaking descending triangles).
Source: Saxo Bank. Create your own charts with Saxo Trader click here to learn more
A pretty basic play today, looking to buy dips in the USD up to NFP, break of resistance over the figure.
Fat finger in GBPUSD has sent all GBP crosses into no-man’s land so we will look at USDCHF today.
Monthly – In a bullish channel formation. We are above Ichimoku Cloud support and there is no sign that the corrective recovery is coming to an end. A full AB=CD formation takes the pair to 1.0686
Weekly – For the last thirty-five weeks we have been holding with a bearish channel formation. The higher lows in Q2 and Q3 of 2016 look to be also forming an ascending triangle formation (resistance at 0.9947). Both of these patterns have a bias to break to the upside. We are holding against the trend of lower highs at 0.9822 as we write.
Intraday (four-hours) – Holding within a channel formation with the trend of higher highs capping bulls. We also have a 161.8% extension level close to this resistance (at 0.9925). The most interesting fact is that the 261.8% extension (0.9941) sits very close to the triangle resistance (at 0.9947). We are looking to get long on dips before the figures or a break of resistance over NFP.
Management and risk description
Entry: Buying a dip at 0.9805 before NFP. Buying a break of 0.9835 over NFP
Stop: 40 pips from entry
Target: intraday 0.9940-45 / medium term 1.0460 (measured move target from the triangle)
— Edited by Clemens Bomsdorf
Non-independent investment research disclaimer applies. Read more