Currencies Lacking Direction Ahead Of NFP Reports
Fri 6th October 2023 : Daily Currency Strength Analysis
Today we’re looking at Trading Setups in:
- NZDCAD (Primary Focus Pair)
- AUDJPY (Covered In Video)
Our Interest (pending order)/Open Interest (live position)
| NZDCAD (Long) | Price | Pips +/- | R/R (Max/Min) |
|---|---|---|---|
| Alert Set | 0.8130 | ||
| Entry Price | If Alert level is tested: Buy Stop Order above circa 0.8150 | ||
| Stop Loss (Min) | 0.8105 | -45 Pips | |
| Stop Loss (Max) | |||
| Profit 1 | 0.8200 | +50 Pips | 1 : 1.1 |
| Profit 2 | 0.8400 | +250 Pips | 1 : 5.5 |
Risk warning: Trading carries a high degree of risk. Read more here.
Our live forex strength vs weakness tables tell us that there is a lack of direction in the markets.
The only currency showing confluence between the trend traders table and day traders table is CAD.
This may be problematic for us today as we have CAD employment data out at 1.30pm BST as well as the Non-Farm Payrolls data out of the US.
High impact data like this could be the cause for the lack of direction in the markets.
Our NZDCAD daily chart is trading within a large bearish channel which formed from the high on the 13th December 22.
Daily bearish channel resistance has been tested consistently, making it a clear level of resistance to be aware of.
If however price were to trade through and close above its daily bearish channel resistance we could anticipate further upside.
At that point buyers may consider targeting previous swing highs at 0.8400 which formed on 14th July.
That being said, if CAD remains weak we could look for buyers to step back in at minor support which on the daily (D1) chart is at prior highs of 0.8130 which formed on 2nd October 23.
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Technical Observations:
- CAD is W1 on the day traders table.
- NZDCAD is approaching key bearish channel resistance.
- Price needs to close above this before looking for long continuation moves.
Todays 9am (BST) Forex Strength Vs Weakness Tables:
