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 pulling back after the rejection from 4.2000 level. We could see a deeper pullback into the 3,9500 level is the pair doesn’t bounce off the 4.1000 median line support. Don’t chase the long trades at the moment. The overall trend is an upside.
USDRUB is in the consolidation above the 66.40 level. Only a daily close below this level would lead to a deeper pullback into the long-term uptrend support 65.30.
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 has bounced off the strong upside support 6.0000 level and could be making a consolidation triangle before a larger upside swing. Look for a possible pullback into the 6.0500 level. The upside continuation will be valid on a daily close above the 6.8000 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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