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/CNYÂ and USD/TRY.
USDBRL is breaking above the strong upside resistance for the upside continuation into the 4.300 level, also the upper Pitchfork channel line. The upside support now is 4.1000 level. You should take only the long trade entries with the stop loss below this level.
USDRUB is in the consolidation above the strong upside resistance 67 level. Look only for the long trade entries targeting an upside extension into the 70 level. The upside support zone is 64-65.Â
USDCNY has broken above the 6.8000 level. This level is now acting as a support for the upside continuation into the 7.1000 level. Look for the long trade entries in the 6.8000-6.8400 zone with the stop loss below the 6.8000 level.
USDTRY is pulling back after reaching the extreme 7.2000 level. The strong support zone is 5.3000-5.600. Look for the trade entries in that zone in the case of a daily close below the 6.000 level.
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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