Traders Foresee a Surge for the Greenback Today


Traders Foresee a Surge for the Greenback Today


USDCHF Moving Averages Support | Ascending Trend Outlook

USDCHF made another strong bounce last week as risk aversion favored the safe-haven US dollar. The pair found support at the 100 simple moving average on its 4-hour chart, which is still moving above the longer-term 200 SMA on the same time frame.

In fact, the upward crossover took place in July and indicated that the pair is in for more gains. Stochastic is moving down for now, indicating that a short-term pullback might take place before the pair goes for more gains. A continuation of the rally could push USDCHF up to the previous highs at .9750.

Further rallies could lead to the formation of new highs, especially if risk-taking remains weak in the next few days. This could lead to a climb up to the .9800 major psychological level and beyond.

On the other hand, a pickup in risk-taking could be positive for the franc and push USDCHF below the 100 SMA support. A break below the .9475 area might mean more declines for the pair, which could lead to a test of the 200 SMA support at the .9400 major psychological level.

US banks are on holiday today, which means thinner liquidity. This could pave the way for consolidation in the rest of the trading sessions with potential breakouts when traders return to their desks later on this week.


USDCAD Head and Shoulders Pattern | Potential Uptrend Reversal

USDCAD is forming the right shoulder of the head and shoulders pattern on its 4-hour forex chart, suggesting that the recent uptrend may come to a halt. A price decline from the current 1.1200 levels could lead to a test of the neckline around the 1.1100 major psychological level.

A break below this level would confirm the downtrend and send USDCAD lower buy as much as 200 pips, which is the same height as the head and shoulders chart pattern. Stochastic is indicating overbought conditions, which means that a selloff could take place as sellers take control.

Both US and Canadian banks are closed for today, suggesting that liquidity could be low in the upcoming trading sessions and lead to sideways movement. Breakouts could take place once traders return to their desks tomorrow.

An upside break from the current levels, however, could confirm that the uptrend is still strong. In this case, USDCAD could test its previous highs at the 1.1300 levels or perhaps make its way past that area onto new highs at 1.1400.


NZDUSD Rising Trend Channel | Buying Pressure Until .8000

NZDUSD has been trading inside a rising channel on its short-term forex time frames, suggesting that the pair might be in for more gains in the next few days. Price is testing the channel support at the .7800 major psychological level, which appears to have held as a floor so far.

The return in buying momentum could take NZDUSD back to the top of the channel at the .8000 major psychological resistance. Stochastic has already reached the overbought area, indicating that buying pressure might fade soon and lead to another drop to the channel support.

There are no event risks scheduled for today, as US banks are on holiday. This could lead to price consolidation between .7800 to .7900, which is around the middle of the channel. Risk-off flows could lead to a break below the channel support, which would put NZDUSD back in selloff mode.

Declines for this pair could lead to a test of the .7700 major psychological level, which has served as a floor for the recent long-term selloff. A break below this region could confirm that the pair is in for more longer-term losses