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. Consolidation in a range from 4.0000-4.2000 before any upside continuation into the 4.4000Â level is continuing.
USDRUB is going for a test of the 64-65 zone of the upside support. Look for a reaction there. A daily close below the 64 level could lead to an extension lower into the 61.20 level.
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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 is in the triangle which is coming to an exhaustion point. A daily close below the 6.0000 level would lead to a downside continuation into the 5.0000 level. For an upside continuation, we need to see a daily close above the 6.4000 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.
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