FX Play of the Day Recaps: June 5 – 8, 2023

2 views 3:06 pm 0 Comments June 10, 2023


Our FX methods had an extremely efficient week with 4 directional biases and technical setups taking part in out usually as mentioned. Test it out!

Foreign exchange Setup of the Week: Easy USD/CAD Vary Play Forward of BOC Choice

USD/CAD 4-Hour Forex Chart by TV

USD/CAD 4-Hour Foreign exchange Chart by TV

On Monday, we noticed this textbook vary setup on USD/CAD, that would shortly see volatility forward with two main occasions from Canada this week.

We didn’t take a robust directional lean, however we did focus on each bullish and bearish value situations to be careful for primarily based on the result of the upcoming Financial institution of Canada financial and rate of interest coverage assertion.

Nicely, it seems like Loonie bulls dominated due to a shock charge hike from the Financial institution of Canada on Wednesday, persevering with the draw back transfer from the vary high that began in Could.

Our bearish situation mentioned was of a draw back help break, which didn’t play out, however there was positively alternative to catch some pips on the transfer, each after our publish and after the Financial institution of Canada occasion.

CAD/JPY: Tuesday – June 5, 2023

CAD/JPY Daily Forex Chart by TV

CAD/JPY Every day Foreign exchange Chart by TV

On Tuesday, we determined to throw CAD/JPY on the watchlist because it pulled again from a robust rally to start out the month of June.

We had a bullish lean as a result of from a charting standpoint, there have been loads of arguments to attract in technical patrons, together with a retest of a value space that included Fibonaccis, a damaged swing excessive and rising 100/200 easy shifting averages (roughly between 103.00 – 103.65).

The catalyst for a possible return to the rally was the upcoming Ivey PMI knowledge and the Financial institution of Canada rate of interest choice, with the latter doubtless having the most important chance of sending the Loonie greater with the opportunity of a charge hike.

Nicely, it seems like technical and elementary merchants have been coming earlier than the BOC occasion, holding the sturdy space of curiosity word above round 103.50, and with the shock charge hike from BOC, the pair took off to just about retest the 105.00 deal with by mid-week earlier than settling round present costs round 104.50 forward of the week shut.

AUD/CHF: Tuesday – June , 2023

AUD/CHF 1-Hour Forex Chart by TV

AUD/CHF 1-Hour Foreign exchange Chart by TV

On Tuesday, we noticed a short-term setup on AUD/CHF, eyeing a possible lengthy setup if the pair gave again some speedy beneficial properties sparked by the Reserve Financial institution of Australia asserting an rate of interest hike earlier within the session.

On the 15-min chart, we noticed a sample/setup that would doubtlessly attract technical merchants (retest of a consolidation space round 0.6000 – 0.6010, in addition to fundie merchants trying to play the RBA occasion at a greater value.

We additionally consider that one other bullish transfer may very well be forward with contemporary catalysts from a scheduled speech by RBA Governor Lowe, in addition to an upcoming GDP learn from Australia. Hawkish feedback from Lowe and/or a better-than-expected GDP learn might hold merchants on the bull facet this week.

Nicely, it seems like we hit the course and turning level fairly properly, however our timing was off as stayed largely sideways, doubtless because of Aussie merchants balancing hawkish RBA occasions and internet adverse financial updates from Australia this week.

However AUD/CHF did lastly pull again on Thursday and hit our mentioned help space on Friday, the place the market caught a bid and moved shortly greater, doubtless driving the broad market risk-on vibes into the weekend.

NZD/CAD: Wednesday – June , 2023

NZD/CAD 2-hour Forex Chart by TV

NZD/CAD 2-hour Foreign exchange Chart by TV

Wednesday was the large day for Loonie merchants with the Financial institution of Canada set to offer their newest financial coverage choice, and we thought the descending triangle sample on NZD/CAD was a strong setup to look at in case we noticed a bullish transfer on the session.

Except for the textual content ebook consolidation-break setup on the 1-hour chart, with the RBNZ hinting of pausing forward, it made sense for elementary gamers to keep watch over the pair for a bearish transfer if the BOC got here out with a minimum of a “hawkish maintain” tone.

Nicely, they did greater than that as talked about earlier, mountain climbing rates of interest by one other 25 bps to 4.75% and stunning many of the market (we really thought this situation was an actual risk in our Occasion Information). A

And as mentioned in our Occasion Information, this situation sparked a really bullish response from merchants to raise the Loonie to the highest spot on the session towards the FX majors, together with NZD/CAD.

Not solely did we see the help space of the triangle shortly damaged, however NZD/CAD moved a couple of every day ATR to the draw back, giving NZD/CAD bears an opportunity to seize fast pips on this strong technical & elementary setup.

Sadly for these in search of an prolonged swing transfer, NZD/CAD reversed course as Kiwi broadly recovered (doubtless on constructive Chinese language banking information) whereas CAD broadly fell with oil costs on Thursday.

AUD/CAD: Thursday – June 8, 2023

AUD/CAD 2-Hour Forex Chart by TV

AUD/CAD 2-Hour Foreign exchange Chart by TV

On Thursday, we noticed that AUD/CAD had dropped like a rock after the BOC shock charge hike, taking the pair to the underside of a rising channel and the 100/200 easy shifting averages.

We thought that bulls might take again management after information hit the wires that Chinese language banks lowered their deposit charges, which might doubtlessly drive capital again into the native and international economic system and spur development. And provided that the Aussie usually trades in correlation to Chinese language information/knowledge, we thought that this might raise up AUD/CAD as properly.

From a value motion standpoint, there have been a number of arguments to doubtlessly attract technical patrons.  This was primarily the realm the place SMA’s, Fibonacci retracement and the rising ‘lows’ sample/channel backside converged.

And it seems like that’s how AUD/CAD performed out because it shortly discovered a bid and returned to the highest of the rising channel, once more, with the assistance of constructive Chinese language information, but in addition doubtless on the broad Loonie weak spot talked about above and arguably broad threat sentiment shifting constructive forward of the weekend.

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