Euro Aussie – EUR/AUD fell lower after price breakout away from its 1.5330 support level as we expected in our 23rd February 2016 Market Outlook. Traders who went short at the breakout of 1.5330 support level and at the 1.6250–1.6074 resistance area as we recommended in our 15th February 2016 Market Outlook may consider continue holding onto the shorting opportunity with a trailing stop behind as price is likely going to continue to move lower in the coming days and may retest its 1.4445–1.4351 support area in the near term.
Aussie Loonie – AUD/CAD is currently trading at its 0.9715 resistance level which traders may consider looking for potential short setup as the overall trend is bearish at the moment. Ideally, we would prefer to see price rejects the resistance level before shorting for a safer entry. If price breakout above the 0.9715 resistance level, traders may still look for shorting opportunity at the next resistance level at 0.9775 to ride on the bearish trend.
China Offshore Yuan – Among the exotic currency pairs, USD/CNH is showing potential shorting opportunity at the 6.5725–6.5575 resistance area. The momentum is bearish at the moment thus traders may consider shorting this market to ride on the bearish momentum. The next support level is not found until 6.4870 which offer traders good profit margin to short the market.
Posted on 2016-03-02 06:30:20