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USDMXN Recovers to 50% Fib Level. Chart Patterns in Focus.

   

Welcome to this week’s Market Blast Technicals where we will look at USDMXN, GBPJPY, NZDUSD, and USDCAD.

 

Last week we looked at key support on USDCAD and price bounced off to the upside and broke the neckline of this double bottom.

Screenshot 2020-06-16 at 09.32.56

Now, we are at the neckline of this double top and, if we break it to the downside, the next key level is still strong support at around $1.337.

Screenshot 2020-06-16 at 09.33.22

We see a clear bullish trend on NZDUSD and the opposite situation from USDCAD as price broke this double top and had broken this double bottom but has retreated to the neckline so we will watch for a new break.

If we zoom out to the Daily chart we can see that price is in an important zone of supply and demand from 2018 and 2019 so we need to keep an eye on our key levels on this pair.

Interestingly, we see the 50 period SMA on the USDCHF 4-hour chart is acting as a dynamic line of resistance.

0.95 is a key level for USDCHF so a break from this would see support at 0.939.

Better news on Brexit has helped the Pound and chart patterns can be found on most pairs like GBPJPY where we saw a clear break of this head and shoulders pattern and price is now trying to break this double bottom.

Screenshot 2020-06-16 at 09.33.47

Also, we can clearly see that both support and the neckline are key Fibonacci levels and we could see movement either way.

We see the Mexican Peso recovering over the last few months and price is trying to break this double top.

Also, the neckline is the key 50% Fibonacci level which proved to be good support late last month.

That’s all for now.  Happy trading with Valutrades and we will see you next week.

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Disclaimer:

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.

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