The USD/MXN is trading near important resistance as speculators consider rather intriguing technical potentials.

On the 19^th of August the USD/MXN was trading near the 20.27000 ratio which essentially came within sight of resistance, with higher marks achieved in the first week of August. By the 25^th of August the USD/MXN had produced a selloff which returned the forex pair to its lower values as the mark of 19.85000 was tested.

But as speculators know, the end of last week witnessed U.S Fed Chairman Powell outline his thoughts for more interest rate hikes to come, and the USD/MXN turned higher with a relatively swift momentum. As of this morning the USD/MXN is traversing important near term resistance and is currently trading near the 20.12700 level. Technical traders are likely eyeing the 20.13500 area as a place to make a decision about potentially stronger buying to occur which could target the marks seen one week ago.

Range has been Strong and may continue to Produce Opportunities in the USD/MXN

Yes, the USD/MXN reflected the broad Forex results as the USD got stronger this past Friday. Technical traders may be inclined to believe that the USD/MXN has produced a rather intriguing price range the past few months and look at its results and wonder if the higher price momentum can be sustained. In July the USD/MXN traded momentarily above the 21.00000 level. As recently as the 2^nd of August the USD/MXN was near the 20.81000 ratio.

August’s Tranquility is Likely to become a Rather Distant Memory Soon in the USD/MXN

Nervous behavioral sentiment appears to be growing, and this week may produce additional choppy trading as financial houses brace for the end of summer and renewed questions about the global economic outlook.  Yes the price of Crude Oil within its higher price range if maintained is likely to serve as a solid anchor of value for the Mexican Peso, but questions about the U.S Federal Reserve and its interest rate will rock the boat.

• The potential for a higher move with the USD/MXN should be considered if current near term resistance around the 20.140000 is broken higher and sustained.
• Traders should be prepared for choppy conditions if technical reactions to higher moves are generated.

The USD/MXN could find itself testing a higher range from 20.20000 to 20.40000 if buying momentum flourishes in the coming days. Trading may prove to be nervous in the coming days as speculators adjust their decisions to financial houses which seek equilibrium.  Risk management will be crucial in the short term. If a trader buys on lower price action near current support around the 20.10000 mark and looks for quick hitting upside wagers they cannot be blamed short term.

USD/MXN Short Term Outlook:

Current Resistance: 20.16400

Current Support: 20.09800

High Target: 20.34000

Low Target: 19.98700

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The USD/CAD has produced a test of its higher range the past couple of days as promised, and short term traders who enjoy speculative conditions should be braced for more.

 

The USD/CAD is producing a rather steady diet of fast paced value changes as it traverses within its upper range. Intriguingly the USD/CAD is bouncing around short term technical resistance, which if it proves durable could ignite speculative selling. Short term traders need to understand Forex conditions for the USD/CAD currency pair are under large shadows of nervous behavioral sentiment.

Volatile Mix of Fundamentals and Technical Considerations for USD/CAD

As of this writing the USD/CAD is near the 1.29775 mark, but readers are urged to compare this to the market as they contemplate wagering. A violent mixture of fundamental and technical perspectives should be considered to gain insights; strong gut instinct may prove important too, along with carefully selected risk taking tactics.

• Energy prices via Natural Gas are near highs and this could help the value of the Canadian Dollar, besides the price of Crude Oil too which remains profitable for producers such as Canada.
• Economic policy speeches via the Jackson Hole conference with the top global central bankers taking place will affect sentiment near term over the next few days.

Canadian Economic Data Remains Sketchy and USD/CAD feels Weight of Central Banks

The Bank of Canada remains under pressure to likely stay hawkish and match U.S Fed policy. Economic conditions in Canada match other major economic spheres as inflation and recession threaten. The housing data in Canada has shown some signs of distress via prices. Technically the USD/CAD remains in what can be considered overbought territory by many. Intriguingly from a fundamental consideration, the high price of Natural Gas of which Canada is an exporter, may factor into some selling pressure of the USD/CAD.

Short term traders should be prepared for more turbulent conditions and choppy results near term. Behavioral sentiment is bound to remain nervous and reactionary. Resistance levels may prove to be interesting junctures to launch selling positions with well-chosen stop losses above which are not so close. If this method of using a wider stop loss compared to a closer take profit is used in the USD/CAD it is urged that a limited amount of leverage is selected.

The USD/CAD is bound to remain volatile, but near term wagers looking for downside with quick hitting targets below may find them to be worthwhile wagers.  Traders are urged not to be overly ambitious in the near term, because sudden reversals are likely to occur which tests the willpower of positions that are not protected with risk management. Potentially aiming for the 1.29725 mark in the short term and slightly below may be intriguing for short term bearish bets.

Canadian Dollar Short Term Outlook:

Current Resistance: 1.29840

Current Support: 1.29725

High Target: 1.30425

Low Target: 1.29500

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The GBP/USD continues to lose ground in early trading today and the depths of the forex pair are bringing into view long term perspectives.

The GBP/USD is traversing near the 1.17500 level as of this writing.  Yesterday’s high of nearly 1.18310 began to wave early and support levels have continued to prove vulnerable. On the 17^th and 18^th of August the GBP/USD was still above the 1.20000 level and some speculators may have thought support lines could be held at those ratios. However, selling of the GBP/USD continues to grow and its pace downwards yesterday certainly quickened.

Long term charts and historical perspective will be debated as the value of the GBP/USD currency pair is challenged.  During coronavirus and the days of the Brexit chaos the GBP/USD did test low depths, but both those events were overcome. The forex pair was able to climb and reached what many financial houses – particularly in the U.K – believe was a more ‘reasonable’ equilibrium between 1.30000 and 1.40000 with outliers being seen on occasion. The price of the GBP/USD is now lower than it was during the worst of Brexit fears, when the 1.19000 ratio came into sight.

Coronavirus, Brexit and Ronal Reagan Topics of Discussion with GBP/USD

During coronavirus the GBP/USD sank below the 1.15000 level in March of 2020, but by September 2020 the currency pair was again above 1.30000. Traders and financial houses this time around may not believe a quick turnaround should be expected. Putting aside Brexit and coronavirus, the last time the GBP/USD traded this low was when Ronald Reagan was President of the U.S and Margaret Thatcher was leading the U.K. The USD was strong at that time due to massive growth created by Reagan’s economic policy. The GBP/USD touched the 1.05000 level in January of 1985.

• Decision on U.K Prime Minister will be known on September the 5^th.
• Can the BoE keep pace with the Fed to safeguard value of the GBP/USD?

Traders Looking for Reversals Higher Short Term in the GBP/USD need to be Careful

The GBP/USD does appear to be oversold from a historical perspective.  The GBP/USD has a long track record of trading at much higher values. However, short term traders who believe the forex pair is suddenly going to turn around and march higher need to keep their ambitions in check. Economic events are turbulent. U.S Federal Reserve policy remains unclear, but will likely remain hawkish over the next few months. And the decision regarding who will be the next Prime Minister of the U.K will be decided in a little less than two weeks.

Coming events this week via the central bankers meeting in Jackson Hole, Wyoming will factor into Forex via speeches made. The long term lows being tested by the GBP/USD are certainly attractive as speculative wagers, but traders should remain conservative. Psychological marks like the 1.17000 level may become a factor. If the 1.17300 mark is suddenly tested and the 1.172500 level were to prove weak, this could set off additional alarm bells. Traders need to use total risk management and keep their targets realistic. Looking for upside movement via natural reversals higher may seem tempting, but in the short term should be done with extreme caution.

GBP/USD Short Term Outlook:

Current Resistance: 1.17500

Current Support: 1.17400

High Target: 1.18240

Low Target: 1.16900

The USD/TRY remains mired within a long term bullish ride upwards, as Turkish economic policy remains mismanaged.

The USD/TRY remains within sight of the 18.0000 mark.  The past week of trading has seen the USD/TRY currency pair within sight of the important ratio several times, but has not quite been able to topple the mark. However, speculators who are capable of holding long term positions may remain happily bullish as they pursue the trajectory upwards. Unfortunately for the citizens of Turkey a serious amount of fiscal mismanagement has led to the demise of the Turkish Lira.

Long Road Ahead Remains Troublesome for USD/TRY as Politics Impede

Turkish leadership largely remains within the grip of President Erdogan. His decisions and interventions within the fiscal policies of the Turkish central bank have certainly had a negative effect on the USD/TRY over the long term. If a five year chart is looked at by traders the path upwards is evident. The weakness of the USD/TRY cannot be blamed on sudden geopolitics which is inflamed via Turkey’s neighbors of Ukraine and Russia.

No, the President of Turkey has acted with a solid grip which sometimes calls into question his motives regarding interest rates, inflation and practical economic theory for many years. Until better policy comes from Turkey, the USD/TRY will remain in an upwards trajectory. For speculators this means they will likely want to remain buyers of the Forex pair and take advantage of moves higher.

• While sudden spikes downwards in the USD/TRY certainly occur, price action is by and large upwards but sometimes runs into stiff resistance. The past week has demonstrated these results.
• Current resistance near the 18.00000 is likely to prove vulnerable, but the question is when it will be vanquished.

All the King’s Horses and Men Cannot Not Put the USD/TRY Together Again

Speculators who pursue the USD/TRY must take into consideration overnight charges, spreads between bids and asks, and understand any other charges which might be seen if they want to trade the currency pair.  Upwards price action in the USD/TRY makes it a dynamic forex pair to pursue. However it is not easy, entry price orders must be used and stop losses are needed to protect against sudden spikes downward.

Buying the USD/TRY on slight dips in price seems like a legitimate wager.  Risk taking tactics need to be used dynamically. Traders must be prepared to hold positions overnight in case resistance levels prove durable like they have the past week. Quick hitting trades may be frequently impossible because of the total expense of putting a USD/TRY position on, meaning too much leverage might be needed to make a quick wager that produces results, and this could lead to massive losses. Unless a trader has deep pockets and a long term timeframe, the USD/TRY may be better watched instead of being traded.

Turkish Lira Short-Term Outlook

Current Resistance: 19.97000

Current Support: 17.90000

High Target: 18.10000

Low Target: 17.82000

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BNB/USD has been able to reverse from this weekend’s darkest depths, and this short term test of highs will certainly challenge the opinions of speculators.

BNB/USD is trading near 222.0000 as of this writing. This short term high is testing ratios seen on the 17^th of June when Binance Coin came within sight of the 220.0000 level also. However this past Saturday as most speculators know, BNB/USD moved towards a low on nearly 182.5000, as the broad cryptocurrency market experienced a wicked selloff of mammoth proportions. The ability of BNB/USD to climb higher is noteworthy, but the reversal likely doesn’t mean the long term bearish trend is dead.

BNB/USD has been able to produce a solid move higher in the past two days. But skeptical traders who believe more downside momentum is going to be generated may actually look at the recent results and consider selling positions around the current price levels. If BNB/USD is able to trade above the 222.0000 and sustain this price action it would be a positive sign, but Binance Coin likely needs to pass the 225.0000 juncture and show it can sustain this value to encourage additional technical buying speculators.

While the current move upwards may be encouraging to some traders, speculators who have pursued the long term bearish trend in the broad cryptocurrency markets remain strong as a group.  The downward trajectory of BNB/USD mirrors the overall price action of its major counterparts and the recent move higher may be looked upon as a ‘suckers rally’.

If BNB/USD were to build momentum from its current price this could certainly be enticing for short term moves targeting the 223.0000 to 225.0000 ratios. However, this move upwards could also trigger selling positions, which believe lower moves will be ignited based on the assumption bearish momentum will show its strength again.

Short term traders should be ready for choppy conditions over the next couple of days.  Reversals higher have certainly taken place and some traders may want to grasp for quick hitting buying positions which target nearby resistance as take profits goals. However, until a considerable amount of resistance levels are toppled, sellers may continue to dominate price action as they seek the return of strong declines in the broad cryptocurrency market including BNB/USD.

If BNB/USD is not able to maintain the 2220.0000 level and slips below the 220.0000 mark, sellers may begin to feel that shorting Binance Coin is worthwhile.  If BNB/USD begins to show signs of weakness and suddenly cannot maintain its lower support ratios of 220.0000 to 218.0000, further erosion could quickly develop.

Binance Coin Short Term Outlook:

Current Resistance: 225.5300

Current Support: 218.1900

High Target: 237.5000

Low Target: 189.1600

While the overall trend is bearish, a relief rally is expected to happen in the near term.

Bullish View

• Buy the AUD/USD and set a take-profit at 0.7300.
• Add a stop-loss at 0.7150.
• Timeline: 1-2 days.

Bearish View

• Set a sell-stop at 0.7220 and a take-profit at 0.7150.
• Add a stop-loss at 0.7300.

The AUD/USD slipped to the lowest level since March 16th as the US dollar rally continued amid fears of a more hawkish Federal Reserve. The pair is trading at 0.7245, which is about 5.50% below the highest level this week.

Australian Dollar Pressured

The Aussie has been under intense pressure in the past few weeks for a number of reasons. First, after soaring during the start of the Russian invasion of Ukraine, commodity prices have cooled a bit recently. The Bloomberg Commodity Index has dropped by more than 5% from its highest level in April this year. This is notable since the Australian dollar is often seen as a leading commodity currency.

Second, the US dollar has been in a strong bullish trend in the past few days. The dollar index, which tracks the greenback against a basket of currencies, has jumped to the highest level since 2020. This rally accelerated last week after Jerome Powell hinted that the Fed will be more aggressive in the coming months. Now, analysts expect that the Fed will deliver a 0.50% rate hike in May and then start its quantitative tightening (QT) policy.

Third, the AUD/USD pair has retreated as investors eye the upcoming Australian election. It will pit Scott Morrison and Andrew Albanese of the labor party. While most analysts expect that Scott Morrison will win his second term, most of them believe that the election will be close. Still, it is unclear how these results will impact the Australian dollar.

This week, the Australian dollar will react to the latest inflation data scheduled for Wednesday. Analysts expect these numbers to show that inflation rose from 3.5% in Q4 to 4.6% in Q1 of this year as energy prices rise. On a QoQ basis, they expect that the CPI rose from 1.3% to 1.7%.

AUD/USD Forecast

The AUD/USD pair has been in a strong bearish trend in the past few days. On the four-hour chart, the pair’s Bollinger Bands have widened, signaling that there is intense volatility. At the same time, the Relative Strength Index (RSI) has moved to the oversold level and is still pointing downwards. The Stochastic oscillator has also moved to the oversold level.

Therefore, while the overall trend is bearish, a relief rally is expected to happen in the near term. If this happens, the next key resistance level to watch will be at 0.7300.

 

AVAX/USD has bounced higher after hitting important lows yesterday, and the cryptocurrency remains in troubling waters as speculators make their decisions.

As of this writing AVAX/USD is above the 77.20000000 level, but its trading conditions have been swift. The choppy range of AVAX/USD mirrors the broad cryptocurrency market which has produced reversals off of important lower depths, but the momentum higher has not been accomplished with a strong amount of buying. The holiday season may also be having an effect on the amount of trading volume generated the past few days across the cryptocurrency world.

Traders should expect conditions to become more robust in the near term as speculators brush off their holiday modes and begin to operate fully again. AVAX/USD remains within the lower elements of its mid-term price range. Yes, it is above its dramatic lows produced in the middle of March, but Avalanche is within sight of those values and one dramatic day of selling could easily put the cryptocurrency up against key support levels.

While the broad market and AVAX/USD has been able to stage a price comeback since yesterday, speculators may continue to feel hesitant and wonder if the bounce upwards will prove to be short lived. Trend as always in digital assets remains a key element of sentiment, the slope downward which has been demonstrated the past two and half weeks in Avalanche continues to look unpromising. Perhaps optimistic bullish traders may perceive this as an ideal buying opportunity for longer term buys, but day traders using leverage should remain cautious.

If the support level of 77.00000000 crumbles and the 76.7500000 ration begins to see a test, this could set off alarm bells among speculators who may be tempted to believe AVAX/USD has further room to decline. Yesterday’s early lows tested the 72.00000000 juncture before finding buyers step into the landscape. The push up reached a high of nearly 78.50000000 yesterday upon a reversal, but this was met by headwinds. Day traders may believe via technical charts that there is greater downside potential compared to upside room to march short term.

Bearish speculators may want to wait for slight moves higher to ignite selling positions. Consolidation if it develops in the coming hours could cause more nervous sentiment to build. A negative sign for AVAX/USD would be the lack of a real fight for higher price levels. If the 78.00000000 is not challenged short term, this could be a signal additional weakness may appear in AVAX/USD and make it a worthwhile selling wager.

Avalanche Short Term Outlook:

Current Resistance: 77.91000000

Current Support: 76.73000000

High Target: 79.17000000

Low Target: 72.68000000

BNB/USD fell to a low of nearly 395.9000 in trading yesterday, but then staged a reversal which challenged important short term resistance near 420.000 early today.

BNB/USD has produced quick trading conditions and speculators should continue to be braced for more volatility in the near term. Binance Coin acts as an important barometer within the digital asset world because the cryptocurrency is used as a utilitarian coin within the Binance exchange system. Over the weekend BNB/USD suffered a negative trend downwards, which essentially built into a rather strong selloff in early trading yesterday.

A low of nearly 395.9000 was demonstrated Monday, which came within sight of depths displayed on the 11th of April when BNB/USD traded near the 391.9500 mark. One month lows were seen on the 20th and 21st of March when Binance Coin approached the 386.5000 vicinity. Having hit a high of nearly 460.0000 on the 5th of April, the ability of BNB/USD to provide speculators with volatility is a sure thing. Traders must treat BNB/USD as a speculative cryptocurrency like all others, and conservative amounts of leverage should be practiced.

The broad cryptocurrency market also turned in plenty of tests regarding support ratios in early trading yesterday. Then reversals higher were suddenly produced yesterday, and prices in the broad market continue to hold early near key resistance levels. BNB/USD intriguingly is within sight of the 420.0000 once again, which it tested on the 15th of April, before touching the level again this morning.

The failure to break through this resistance level should be considered. If BNB/USD is able to consolidate and remain within sight of the this resistance level in the short term and the broad cryptocurrency market remains stable, speculators may be tempted to believe upside potential lurks for Binance Coin in the short term.

The current price of BNB/USD has stumbled slightly and is near the 416.7000 as of this writing and traders need to consider their perceptions. If the 416.0000 level is able to maintain its support ratios and hold back a tide of nervous selling, BNB/USD could see another move higher and a retest of early morning resistance levels may be demonstrated. Traders should consider quick hitting positions in the short term, because the broad cryptocurrency market may produce more volatility today if trading volumes increase as speculators return from their holidays.

Bearish traders who believe the move higher early this morning ran into resistance which will prove durable, may be tempted to actually sell and look for a retest of lower values seen yesterday. Caution is advised for all short term speculators, because market conditions appear ready to deliver sudden bursts of energy today.

Binance Coin Short Term Outlook:

Current Resistance: 418.2400

Current Support: 416.3500

High Target: 426.9500

Low Target: 405.7900

SHIB/USD is within an intriguing price range early today as speculators make their decisions regarding potential direction as resistance appears alluring.

SHIB/USD traded towards important resistance in late trading yesterday only to be pushed back downwards. However, SHIB/USD remains tantalizing close to short term higher levels and it has produced an intriguing amount of technical resistance as it battles in a range consisting between 0.00002230 and 0.00002260.

Last week at this time SHIB/USD was trading higher and then sunk to a price near the 0.00002200 mark, until it staged a leg up on the 13th of March and tested highs near 0.00002340. SHIB/USD is fractionally traded and the ability to have a large amount of Shiba Inu bought at a relatively rock bottom cost makes it attractive for long term cryptocurrency speculators. The idea of purchasing SHIB/USD and tucking it away and seeing where its value is one year from now is attractive.

However day traders of SHIB/USD are looking to take advantage of the movements within the cryptocurrency quickly. A solid amount of risk management is necessary to make sure the small moves generated in SHIB/USD do not cause a devastating percentage change in value, which can empty a trading account quickly if too much leverage is used. The broad cryptocurrency market has been within a solid bearish trend the past five months and some traders have become shy expressing their bullish optimism.

Interestingly the past week of trading has produced rather solid support levels in the broad crypto world and SHIB/USD. It remains foolhardy to try and predict a true low for any type of financial asset regarding value, but traders who are glancing at SHIB/USD and believe the cryptocurrency is within the lower tier of it range and has room to traverse higher cannot be blamed. Speculative traders who like SHIB/USD because of its ability to create volatility with small price changes may look at short term charts and feel as if there is a chance for a reversal higher.

If current support levels are proven durable and the 0.00002240 to 0.000022300 levels remain solid in the short term, traders cannot be faulted for wanting to wager on upside movements. The ability for SHIB/USD to climb slightly higher and test realms near 0.00002275 to 0.00002285 is certainly not out of the question. If the broad cryptocurrency market among the major digital assets remains steady and gains near term, a move above 0.00002300 is not out of the question for Shiba Inu.

Shiba Inu Coin Short Term Outlook:

Current Resistance: 0.00002267

Current Support: 0.00002225

High Target: 0.00002290

Low Target: 0.00002212