Today, we will target the US dollar in interesting setups with three different currencies. All three setups are pending, which means that we still have to wait for a proper signal, and in this case, the signal should be coming from a legitimate breakout of either crucial support or resistance.
The first setup is the USD/CAD. The pair’s first three months in 2020 can be labeled as a bullish Eldorado. Since the 20th of March, we have a bearish correction. For now, the correction is shaped as an inverse head and shoulders pattern or a triple bottom, if you will. The formation has two necklines, a dynamic and a horizontal one both of which could be important. The way investors can trade this setup is to wait for the bullish breakout of those resistances and buy or wait for the price to break the support of 1.385 and sell.
The NZD/USD is the second star of the day and the setup here is pretty similar, but, reversed. So, we do have a nice downswing and then a bullish correction, which also looks ready for termination. The price made a triple top formation and in order to get a proper sell signal - which would bring the price back into the trend - we need to see a breakout of the neckline first.
The last pair of the day is the USD/MXN and its setup is one where we do have a symmetric triangle pattern, so the next direction is still 50/50. The price is currently aiming towards the lower line of this pattern but this doesn’t guarantee this breakout. Most price action worshipers are probably waiting for a breakout first. So, a breakout of the upper line of this pattern will give us a buy signal while a breakout of its lower line will tell us to sell.
Axiory Analysis
