FX trading levels for the end of November
As we head into the end of November we have significant trading levels to watch in the major US dollar pairs.
AUD/USD is holding 11 pips above important support at 7185/75. Therefore try long positions here with stops below 7160. A break lower is a sell signal targeting 7140, 7125/20 and perhaps as far as 7090/85.
If we hold above this key support level we target 7215 before strong resistance at 7255/65. Short positions worked here earlier in the week but I think they are too risky now on the next test. A break higher, however, is a buy signal targeting 7300 and 7330/40.
NZD/USD is currently trading sideways-to-lower in what I think is a bull flag. This means we will eventually break higher to re-target 6860/70. We have key upper trendline resistance at 6800/10 but a break higher is a buy signal targeting strong resistance at 6860/70. Try short positions with stops above 6900.
Failure to beat 6800/10 keeps us in the bull flag formation and risks a slide to 6750/40. Try long positions with stops below 6725.
USD/JPY and USD/CAD
USD/JPY beat resistance at 113.00 for a buy signal this week, targeting minor resistance at 113.50/60 and 113.75/80. The outlook remains positive into the end of the week as we look for a test of the November high at 114.10/20 for profit-taking on all longs. Expect very strong resistance at 114.45/55 with a good chance of a high for the week if we make it this far.
We have minor support today at 113.60/55, then better support at 113.30/20 could hold the downside if tested. Long positions here need stops below 113.00.
USD/CAD held strong support at 1.3190/80 as expected this week and shot higher to re-test last week’s high at 1.3310/20. Strong resistance at 1.3355/65 is likely to hold at this stage, if tested today. Short positions need stops above 1.3385. A break higher is a buy signal.
There is the risk of a double top after we tested last week’s high, which acts as a sell signal today targeting 1.3270/60 and support at 1.3230/20. A break below 1.3190 is another sell signal into the end of the week.
Technical Analyst & Trader
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