Good Morning Trader Friends!
Looking at daily charts across the majors, EUR/USD, GBP/USD, and USD/CHF are looking rather neutral, while AUD/USD and USD/CAD show signs of reaching the outer edges of it’s normal range, both in favor now of an equalizing move towards USD. What I mean is that EUR/USD, GBP/USD and USD/CHF could move in either direction without getting into over-sold over-bought territory according to mathematical indicators for market movement, while the the AUD/USD and USD/CAD are already reaching highs against the USD, such that a move further against the USD (that is, up for AUD/USD, and down for USD/CAD) will send these pairs into areas of over-extension on the daily charts. Possibly, the AUD/USD and USD/CAD are ahead of the others and giving us a clue that the next market move will favor USD. If that is the case, I’m looking for upcoming news events to trigger market moves in favor of USD, and the charts would look like this:
Overall assessment: I am looking for opportunities to trade in the direction of the USD. I know I may be wrong and the market could run hard against me, so I will keep tight stops, and also look for EUR/USD and GBP/USD Reverse Combo setups to be prepared with a counter-thesis plan.
Good luck! Enjoy the rest of your week! See you at 5 am on Friday for non-farm payroll trading with Rob Booker and Rob Wilson. Watch for a link to the webinar from @Robbooker.
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