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 bounced off the 4.0000 level. Going into the next week we could see some consolidation in a range from 4.0000-4.2000 before any upside continuation into the 4.4000Â level.
USDRUB is testing the 70 level of the rising wedge. This rising wedge level could lead to a rejection for a pullback into the 67 level. We are looking at the possible swing down into the 64 level before the next leg up. A daily close below the 66.70 is required.
US and European traders trade with our recommended broker with higher leverage. Leverage up to 1:500.
USDCNY is in the consolidation 6.8000-6.8400 zone. We could see a break of this range soon and look for a possible pullback lower or extension higher depending on a price action.
USDTRY broke below the 6.4000 triangle level. This break is leading to a possible retest of the strong upside support 5.1000-5.4600 zone. Invalidation of the 5.1000-5.4600 zone test will come only on a daily close above the 6.6400 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)
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 daily and weekly analysis and 5-10 trade alerts per week directly on your mobile device via Private twitter feed and Private Telegram group!
