Forex Update – Trading Opportunities in 2020


2020 could provide some fantastic trading opportunities for day, swing and position traders. Our analysis below highlights some of these opportunities in the Forex markets…

 

AUD Pairs – Weekly Charts 

 

Most AUD pairs are down-trending longer-term. Most have formed clear weekly bearish channels. Moving averages are bearish and widening, confirming the downside momentum.

As AUD pairs retrace, selling opportunities may exist around horizontal levels, dynamic resistance from moving averages and the bearish channel resistance areas. Bearish moves could find support around horizontal levels and the channel support areas.

AUDCAD – resistance around the weekly moving averages, channel resistance and horizontal levels at 0.9210, 0.9645 and 0.9765. Support around 0.8910 and the channel support area.
AUDCHF – resistance around weekly moving averages, channel resistance and horizontal levels at 0.6865, 0.7155, 0.7355 and 0.7750. Support around 0.6530 and the channel support area. AUDCHF could possible start ranging between 0.6225 and 0.7750.
AUDJPY – resistance around weekly moving averages, channel resistance and horizontal levels at 75.95, 81.90 and 89.50. Support around 70.30 and channel support area.

 

AUDNZD – Weekly Chart

 

Price has been ranging since 2014 and is currently nearing the range support area. The moving averages confirm the market indecision – they have been crossing frequently and are moving sideways.

Trading opportunities may exist around the support and resistance areas of the range.

 

CADCHF – Weekly Chart 

 

CADCHF has been ranging since the SNB incident in 2015 and has formed a horizontal channel at 0.6865-0.7870. The moving averages are tight and crossing frequently – confirming the indecision.

Trading opportunities could exist around the support and resistance areas of the horizontal channel. If price closes above the channel resistance area, CADCHF may attempt a bullish move higher.

 

EUR Pairs – Weekly Charts

 

Most EUR pairs are bearish or showing signs of potential bearish movement. Some of these pairs are currently down-trending in weekly bearish channels, some have recently broken bullish channel support areas. Moving averages confirm the potential downside – they are becoming bearish and could cross bearish.

As EUR pairs retrace, opportunities to go short could exist around moving averages, channel resistance areas and around horizontal levels. Bearish moves may find support around horizontal levels and channel support areas.

EURCAD – resistance around weekly moving averages, channel resistance and horizontal levels at 1.4885 and 1.5590. Support around channel support and horizontal levels at 1.4140, 1.3835 and 1.3205.
EURCHF – resistance around weekly moving averages, channel resistance and horizontal level at 1.1470. Support around channel support area and horizontal levels at 1.0640 and 0.9815.
EURGBP – resistance around weekly moving averages and horizontal levels at 0.9050 and 0.9325. Support around horizontal levels at 0.8320 and 0.7585. Possible range at 0.8320-0.9325.

 

GBP Pairs – Weekly Charts

 

Some GBP pairs have broken recent highs and have swung above key resistance areas, suggesting that price could start up-trending. Other GBP pairs are looking indecisive. Moving averages are mixed, some are confirming the upside, whilst others are signalling indecision.

Trading opportunities opportunities may exist around support and resistance areas of consolidations/ranges and if price closes out of a range (break-out trades).

GBPAUD – support around weekly moving averages, bullish channel support area and horizontal levels at 1.8535, 1.7700, 1.7265 and 1.6000. Resistance around channel resistance area and horizontal levels at 1.9420 and 2.1885.
GBPCAD – Range support at 1.5795. Range resistance at 1.8250.
GBPCHF – Range support at 1.1670. Range resistance at 1.3720.
GBPJPY – Range support at 126.60. Range resistance at 155.20.
GBPUSD – Range support at 1.2025. Range resistance at 1.4235.

 

JPY Pairs – Weekly Charts

 

Most ***JPY pairs are down-trending – the Yen is strengthening across the board. Price action has formed weekly bearish channels. Moving averages have crossed bearish, signalling that the downside momentum could continue.

Shorting opportunities may exist around moving averages, bearish channel resistance levels and horizontal levels. Bearish moves could find support around channel support areas and horizontal levels.

AUDJPY – resistance around weekly moving averages, channel resistance and horizontal levels at 75.95, 81.90 and 89.50. Support around 70.30 and channel support area.
CADJPY – resistance around weekly moving averages, channel resistance and horizontal level at 88.65. Support around weekly channel support 80.90, 78.70 and 76.75.
NZDJPY – resistance around weekly moving averages, channel resistance and horizontal levels at 72.45 and 83.35. Support around channel support and horizontal level at 66.65.
USDJPY -resistance around weekly moving averages, trend resistance and horizontal levels at 114.25 and 117.80. Support around horizontal levels at 104.80 and 100.35.

 

NZD Pairs – Weekly Charts 

 

Most New Zealand Dollar pairs are down-trending longer-term. Most have formed clear weekly bearish channels. Moving averages are bearish and widening, confirming the downside momentum.

As NZD pairs retrace, selling opportunities may exist around horizontal levels, dynamic resistance from moving averages and the bearish channel resistance areas. Bearish moves could find support around horizontal levels and the channel support areas.

NZDJPY – resistance around weekly moving averages, channel resistance and horizontal levels at 72.45 and 83.35. Support around channel support and horizontal level at 66.65.
NZDUSD – resistance around weekly moving averages, channel resistance and horizontal levels at 0.6905 and 0.7520. Support around channel support area and horizontal levels at 0.6435 and 0.6260.

 

USDCAD and USDCHF Pairs – Weekly Charts 

 

Both pairs are indecisive. The moving averages confirm the market indecision – they have been crossing frequently and moving sideways.

Trading opportunities could exist around any of the key weekly horizontal levels.

USDCAD – price is ranging between 1.2140 and 1.3730. Horizontal levels at 1.4570, 1.3730, 1.2140, 1.1235 and 1.0660.
USDCHF – horizontal levels at 0.9150, 92.65, 0.9530, 1.0190 and 1.0300.