The last full trading week of 2019 on the currency and raw materials market is over. I’ve analyzed several interesting currency pairs, including two without USD, the so-called crosses. The first pair are the European currencies EURCHF and the second one is from the western hemisphere – NZDCAD.
Analyzing this pair on Monday – “EURCHF – bearish outside bar on Weekly chart “, seeing the bearish engulfing on the weekly chart I assumed that falls are more likely than increases. I wrote so: “Friday’s session was marked by significant declines in the EURUSD, which resulted in a strong downward pin bar on the EURCHF pair as well. The top wick of Friday’s day candle indicates that the resistance of the triangle in which the price has recently moved has been rejected. It is very likely the pair to fall at least to the support of this triangle which is about 50p lower.” The prophecy has come true… Friday’s daily pin bar turned out to be a good sign for declines. The price fell to the expected level, even slightly lower.
Analyzing the pair NZDCAD I wrote so: “Looking at the H4 chart, we see that the price is approaching the lower limit of the IB near which there is a demand zone and support of the channel.
It’s worth to observe the price behavior and if the channel support is successfully overcome (the daylight candle will close below), it can be an impulse for dynamic drops, and the target for supply can be S/R = 0.8500″.
Unfortunately, the support mentioned in the analysis withstood the pressure of sellers and the demand entered on market, pushing the price upwards. Currently, the price has stopped under the supply zone and the future fate of the pair will be determined by whether the market will manage to overcome it.
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