Currency Strength Meter: 6th December
The currency strength meter this week highlights the stronger currencies are USD, CHF and JPY. The weakest currencies are NZD, AUD and CAD. The USD, JPY and AUD are all in reversal zones and if the sentiment of the market moves from risk off to risk on we could see a reversal form. The risk on sentiment could return in the markets this week as the S&P500 sits at key support where the strong uptrend could continue.
Trending or Reversal Pairs of the week:
NZDUSD, NZDCHF, NZDJPY, AUDUSD, AUDCHF, AUDJPY.
Chart To Watch
The CADJPY price could be one to watch this week in line with a reversal opportunity. The JPY is at a reversal zone and with the stock markets back at major levels we could see this market make a move higher.
Looking at the trend in the market we can see that the price is at the previous highs where buyers could step into the market.
If the market is going to make an impulsive phase higher we would see the market form higher highs and higher lows here. The price hasn’t formed this yet but the price is consolidating at the level which does show that orders are building up in the market. If the price breaks out of the highs and forms a bullish retest we could look for long opportunities.