In this article, we will take a look at the Emerging Market Currencies. Lately, we have a strong USD strengthening against these currencies which could be a worrying sign of their incoming weakness or a trade war. No matter the reason is, we could see a new crisis looming in the stock markets across the world if we get a slow down of this economies. We will take a look at the long-term technical analysis perspective of the USD/BRL, USD/RUB, USD/CNY and USD/TRY.
USDBRL is bouncing from the 3.7000 level and is extending to the upside. The first stronger upside resistance is 4.000. Look for the long trade entries with the SL just below the 3.7000 level.
USDRUB is breaking above the consolidation triangle 63 level for an upside continuation into the 67 level. At this stage, you should look for the long trade entries with the SL below the 62 level targeting 67 at least on the ongoing pullback.
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USDCNY is breaking above the daily 200 SMA 6.4564 level and is calling for an extended upside continuation with the first resistance coming in at the 6.6110 level. We have an ongoing break above the 6.6110 level. This is an important upside break for the pair and it would lead to an upside extension into the 6.8000 level.
USDTRY is in a upside consolidation pattern after the 4.4900 level pullback retest. A strong upside support zone is 4.3648-4.4969. Upside continuation is expected from here and will be confirmed with a break above the 4.9679 level. Look for the long trade entries with the SL below the 4.5000.
We have used the combination of the top-down trading analysis to get this key levels explained on the charts. USD is in the near-term uptrend continuation against the most of the EM currencies and we could see the continuation of this trend moving forward.
Happy trading! (click on the chart to enlarge it)
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