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 55 WMA (weighted moving average-red line) 3.7950 level. This break could lead to a 3.9185 test again. A daily close above this level is needed for the upside continuation into the 4.100. The uptrend support now is 3.7500-3.8000 zone.
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. A daily close above the 67.500 level is needed for the upside extension.
USDCNY has broken above the 6.9000 level. This level is now acting as a support for the upside continuation into the 7.1000 level.
USDTRY is pulling back after reaching the extreme 7.2000 level. Te strong support zone is 5.3000-5.600. Look for the trade entries in that zone.
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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