- The open is set for a steady open considering there have been little in the way of disruptive weekend news.
- This week’s watchlist has gold correcting, yen on the backfoot, CNH firming and AUD overstretched, EUR at resistance.
The following is an analysis of 28 pairs of majors crosses which have shown promising prospects for the open and week ahead via a combination of various strategies, from both a swing trading and day trading perspective.
Gold, swing analysis
First and foremost, gold has been a well-documented analysis in prior days which recently concluded having met the $1,765 weekly target as follows:
The weekly outlook was illustrated in the above chart from the original analysis done on 9. Feb: Gold Price Analysis: Bears to target a run to weekly support at $1,765
Concluding article: Gold Price Analysis: Target achieved and fresh bear-cycle lows for 2021
Live swing trading analysis for the Asia Monday open, 22.02.2021: The Chart of the Week: Gold prices meet critical demand area
USD/JPY, swing trade
USD/JPY has corrected to the daily 10 EMA and the vicinity of prior resistance structure where the weekly 10 and 20 EMAs are converging bullishly.
This gives rise to the prospects of a fresh daily bullish impulse for which can be set up from a 4-hour chart and swing trading perspective.
However, there is some work to do yet for the 4-hour perspective to be bullish prior to entry.
Ideally, the price needs to break the overhead resistance and on a restest of the moving averages and structure, a buy limit entry can target an upwards extension of the broader bullish trend.
AUD/USD, swing analysis
AUD/USD has formed a weekly W-formation for which a retracement to at least a 38.2% Fibonacci of the bullish impulse would be expected on the way to the neckline of the formation.
From here, the bears can monitor for 4-hour bearish conditions, with MACD needing to get below the zero line.
USD/CNH, day trade
Further to the prior analysis, USD/CNH Price Analysis: Upside extension running out of steam, where the upside was meeting a strong level of resistance, the focus remains on the downside.
USD/CNH bears are looking for a return to the mean of the daily bullish impulse.
From an hourly perspective, the trade can be set up as follows on a break of structure and retest as resistance for a 1:3 risk to reward short:
The price needs to beak the 21-MA and MACD needs to cross below zero.
More to come from…
EUR/CHF, NZD/CHF, EUR/JPY, NZD/JPY, NZD/CAD, CAD/CHF, EUR/GBP, AUD/JPY …