Financial Markets Online > Weekly Analysis > Top trades of the week

This week there are a number of pairs and assets we are keeping a close eye on.

Read about our top three below:

Gold

  • Momentum continued to the upside and stalled at the February 2019 swing high.
  • Seasonally the main summer low is put in place around Mid-June. I would favour a Daily Phase 2 move from this level back into the blue zone. Wait for the Daily 20 EMA to catch up, look for bounce off it before a continuation to the upside.

 

USDJPY

  • This pair hit the target area highlighted in last week’s analysis and is currently consolidating.
  • After hitting +7 extreme strength, JPY moved down to three places.
  • Look for a Phase 2 move up to the previous celling and daily trendline. June is a very strong month for JPY so any strong selling reaction at this level could see a continuation of the move to the downside. A strong break into the blue zone would shift the bias towards the bulls.

USDCHF

  • Price reached the 0.9880 target, briefly moved below, brushed the Monthly S2 Pivot before pulling back.
  • Daily currency strength pushed to +6 and we could be seeing a slowdown in momentum for this move as specs fail to buy into long positions again last week. EURCHF also hit a strong support and closed above the Weekly 200 SMA. A push higher for this pair would mean a quick offload of CHF in favour of EUR.
  • The Weekly 100 & 200 SMA hover just below and any final push could end at the 0.9790 – 0.9800 level.

 

Watchlist

  • Intraday sell USD.
  • Intraday sell JPY. Most charts still in Daily Phase 2’s so keep targets realistic and small.
  • Buy EURCHF, EURAUD and EURNZD.
  • Sell AUDCAD and NZDCAD.

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