21-01-24 The Week Ahead

Posted Jan 21, 2024

By JonK 2 min read

Strength Indicator:

The Currency Strength Indicator

Purely looking at this strength chart might suggest that there should be movement on the USD/CAD pair. We’ll probably use this as a bias for corroborating any Price Action indication that we see in the USD and CAD markets.

Let’s start with USD/CAD:

USD/CAD Daily

It looks like the downward trend might have been broken, but with the USD weakness and the CAD strength, I’m inclined to think that the downward trend will at least be retested in the Gold Fib zone. I’ll be looking for a suitable entry and a target towards 1.33350

AUD/USD:

AUD/USD Daily

Again taking the Strength of AUD and weakness of USD, I’m bullish (at least for the short term) for this pair. I’m looking for a retracement to just over the red 200SMA which coincides with the Gold Fib Retracement level. Target 0.67150

NZD/USD:

NZD/USD Daily

Now ignoring the Strength Indicator, I’m bearish this pair. The last time this pair spent any real time above the 200SMA was 2020. I’m looking for a move towards 0.60500 and we’ll reassess there. It could retrace from there to the 200SMA to make the right hand shoulder before decending lower.

GBP/AUD:

GBP/AUD Daily

Sentiment: Short-term Bearish. I’d like to see a retrace to the fib50, at about 1.90000. Thats a nice whole number that sits just below the 9, and 20SMa and slap bang on the FIB50.

GBP/CAD:

GBP/CAD Daily

Sentiment: Short-term Bearish. I’d like to see a retrace to the fib50, at about 1.6950. Thats a nice whole number that sits just below the 9, and 20SMa and slap in the FIB Gold zone. After that I think we can see it continue higher to 1.72750