By Forex Signs, Inc.
The CADCHF pair seems deceiving at the opening of the trading session today. The pair initially dumped off a bearish candle stick at H1 chart then had a reversal breakout at the following stick. The bullish reversal was 30 pips from the opening price. At the time of writing, the pair has been moving sideways; trading at a low volume. Resistance level is 0.9425 while support is 0.9423. Looking back at yesterday’s session, the USDCHF pair already completed a triple bottom pattern. The Alligator indicator indicated that the pair began bearish but towards end of session, the alligator closed its mouth. Today’s session, the pair is looking strongly pulled upward by a bullish force. The MACD (12, 29, 9) has already surpassed the 0.00 scale in H1 time frame. As of press time, the signal has already reached 0.0006. For the longest time, the MACD has finally touched the scale above 0; meaning there is a greater chance that the pair will pursue an upward trend. To further support this analysis, %R (14) is seen lingering at the above -20 level. The line has not yet touch the extreme 0, when it does, it is advisable to hold the pair first then buy it back once it has already neutralize. Behold the Alligator as it just opened woke up from a long sleep and it looks like that it is very hungry to feed on an upward trend. A strong buy is recommended once the price level breaks initial resistance.
Asian Session Outlook
Similar trend patterns were traced yesterday for the Japanese yen, aussie, and kiwi. The three major currencies of the Asian region moved sideways against the U.S. dollar whilst alongside euro, there was a significant downfall recorded. Investors probably played it safe trading the greenback as they were waiting for the release of U.S. economic indicators. Meanwhile, the trades against euro were all bullish. The EURJPY pair or euppy fell 39 pips. EURAUD on the other hand collapsed 60 pips; and finally, the EURNZD pair decreased by 47 pips. The bullish force shown by Asian currencies alongside euro may probably because speculators influenced the trade that the three musketeers of the Asian region were considered as currency safe haven compared to euro. Speculators have a great influence in the trade today as most countries are still observing a Bank Holiday.
For today’s session, the three Asian currencies may just move sideways as there are no market-moving indicators set for release. The trade may be influenced by indicators backing up their American and European counterparts. Studying the rival’s market-movers, there is a chance that the trades against euro will further incline; whilst against greenback, the trend might fall a few pips. However, there is a probability that the Australian dollar can move an upward trend against both currency counterparts as an increase in their Commodity Prices in December is expected.
About the Author
Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.
