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 breaking below the 55 WMA (weighted moving average-red line) 3.8080 level. this break could lead to a 3.7000 pullback. The dowsnide pullback scenario will be invalidated only on a daily close above the 3.8385 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 stop loss below the 62 level targeting 67 at least on the ongoing pullback. The pair is in the middle of the consolidation and the strong resistance is 64.1410 level.
Surprise Lifetime premium membership discount
[wpecpp name=”Lifetime membership” price=”259″ align=”left”]
USDCNY is breaking above the daily 200 SMA 6.4564 level. This is an important upside break for the pair and it would lead to an upside extension into the 6.8000 level. After reaching the mentioned level it is now a strong resistance and we could see a pull back from here. Look for the reaction from this level on a daily close basis.
USDTRY is in a upside consolidation pattern after the 4.4900 level pullback retest. Continuation triangle has been broken and we have an upside extension into the 4.9679 level. A strong upside support is 4.7600 level. The pullback into this level should be used for trading entries.
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)
The broker of our choice! Open the account and get the discount for our services! If you are European retail investor with our broker you can get higher leverage.
Through time we have developed a very respectable trading strategy which defines Entry, Stop Loss and Take Profit levels with high accuracy and allows you to make position Risk Free. We are publishing 5-10 trade alerts per week via real-time Private twitter feed!