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 supported by the 3.6570 level looking at the weekly and the daily chart. As long as this support holds we are seeing a strong case for an upside continuation above the previous 4.000 level of an upside resistance.
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.
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. Look for the long trade opportunities here with the SL below the 6.3930 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.
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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