Position tracking a handful of forex pairs

Murali Sarma Trade Guidance, LLC

USD/CAD has been moving sideways to up now steadily after the CAD began giving up some of its nice gains from the past month. Tight conditions set markets up for breakouts and the USD especially remains muted to mostly bearish overall giving the basket of currencies it measures against, some momentum. The US Dollar Index is looking like some of the same we’ve been seeing since the end of April. This past week we saw considerable upside on Thursday which soon thereafter gave up all gains following the US Non-Farm Payrolls which despite being about 100K jobs lesser than the consensus estimate, remained a tad bit bearish for the greenback overall.

Perhaps the chiseling lower since then could be different as it isn’t occurring from a swing-low, but the fact that the one-day rally got negated on not such good economic news suggestive of the speculation that perhaps a swing-high may be in. There is the potential that a bear-flag formation forms, more discernable off the daily charts. A bounce may develop off the lower parallel of the pattern that is forming, but again it should be minimal. If we fall below the May low at 89.53 breaks the next levels of support is at 89.20 and following that a bigger gap into the 2018 low at 88.25. This last support level would be a major test as it is a level that began over a decade ago.

Below we put out trade ideas which we are currently in from the lower end of the "suggested entry range". Most times, we like to wait for the profit targets to achieve but have taken off winning trades sooner based entirely by watching the Dollar index.

Currently Active trade

Is there an instrument you wish for us to analyze? Drop us a note. Come visit us at our website and and fill out a contact form and tell us about your experience with trading financial instruments and commodities. We present weekly trade ideas on Twitter @tradeguidance and point you in the direction of the articles we like to publish on FxStreet. Tweeting only with the intent of helping traders learn!

Chart of AUD/USD

Author

Murali Sarma

Trade Guidance, LLC

Murali Sarma is a private investor and trader, dealing in currencies, commodities (grains, energies, metals, bonds, indices) and stocks.

EUR/USD hovers around nine-day EMA above 1.1800

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold eyes acceptance above $5,000, kicking off a big week

Gold is consolidating the latest uptick at around the $5,000 mark, with buyers gathering pace for a sustained uptrend as a critical week kicks off. All eyes remain on the delayed Nonfarm Payrolls and Consumer Price Index data from the United States due on Wednesday and Friday, respectively.

Top Crypto Gainers: Aster, Decred, and Kaspa rise as selling pressure wanes

Altcoins such as Aster, Decred, and Kaspa are leading the broader cryptocurrency market recovery over the last 24 hours, as Bitcoin holds above $70,000 on Monday, up from the $60,000 dip on Thursday.

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.