I like the Yen for more upside. Thursday’s strong break and close out of the July wedge is promising. However, price has done a lot of “nothing” lately, so I’m piling in yet.
I’d like to see a retest of the wedge from the upside, or a clear bullish push suggesting renewed Dollar strength before going long.
The Swissy appears to be breaking down lower. Last week we saw price close below the range it’s been stuck in (grey shaded box), and now it’s consolidating (blue box).
I’m interested in shorting, but how? I see a few scenarios:
- I’d like to see price close below the recent daily lows we’ve seen, i.e., below the blue box I’ve outlined. We’re likely to run into a bit of traffic at 0.9780.
- Maybe we’ll see price spike up into the grey box and fail. That push and failure often gives me the short signal I’m looking for.
I would avoid the short if price pushes up and manages to close back inside the grey box. That would invalidate the setup for me.
I had a short on EURAUD last week – based on where I have marked 1. Price turned lower, going my way and then quickly reversed. I killed my short for a small loss. Since then, price blasted right through the consolidation is spent a month+ sitting in and is now trading on the other side of my grey box.
If price manages to close up near Friday’s highs today, I think we could expect more upside here, perhaps all the way to May’s highs. Let’s see.
As the summer holidays in the Northern Hemisphere draw to a close, it seems like many of the market range’s we’ve seen recently are coming to an end. As always, I’ll trade what I see. If you have a market or two you’d like me to look at, please pop your request into the comments section below.