NASDAQ Composite Index broke into the weekly Ichimoku cloud last week but managed to close safely above it again. Support continues to hold, and it may soon be safe to get back in the waters…
The NASDAQ Composite Index has not traded below the weekly Ichimoku cloud since mid 2016. It is now trading near critical support levels. A close below the cloud will be quite damaging to the longer term technical picture.
AUDJPY: Bearish candle forming on daily charts
With the bearish close on Fri, shorting AUD/JPY with a stop above the recent highs gives us a good risk vs reward short based on the daily chart.
Last week, EUR/CAD tried to test the bottom of the daily Ichimoku clouds and failed. The close also resulted in a bearish candle. The recent two previous occasions when this occurred resulted in sell-offs in the days after. There's a good chance that EUR/CAD will test new lows soon.
EUR/JPY closed last week below the weekly Ichimoku cloud. Until it recovers to close above the cloud, sell on rallies is the way to go.
NZD/USD seems to be having trouble breaking above 0.6600-10 area which is close to the bottom of the daily ichimoku cloud. This makes for a good risk/reward opportunity to add to shorts.
As the economies of Canada and the Eurozone continue to diverge, EUR/CAD is likely to test much lower levels. The recent rally presents us with a good opportunity to get involved.
USD Index (DXY) seems to have survived the selloff and is holding above the weekly ichimoku cloud. The move higher becomes increasingly likely as time passes.
USD/CAD has gapped lower on Monday open because of news that US and Canada has finally reached a workable trade agreement. Breaking 1.2880 decisively, the downward trend is likely to resume and any rallies should be sold. If the market should try to close the gap, it would present us with a good risk/reward trade!
US 10yr Bond Yields are attempting to take on new highs. Watch out for more pressure on Emerging Markets if the move should extend.
Hang Seng Stock Index looks extremely bearish on the weekly chart. It could trade to the low 20,000s in the months ahead. Look out below!
The downtrend continues. With no end in sight both on the fundamental and technical fronts, all rallies are meant to be sold.
Critical support level for the dollar index (DXY) on the weekly chart. Hold the line!
The weakness of the AUD caused mainly by the political uncertainty surrounding the leadership tussle is now over. Expect AUD to regain ground vs the NZD as RBNZ remains a lot more dovish than RBA. The daily reversal candle on Friday also presents an opportunity with good risk reward.
EUR/JPY is also trading below the weekly Ichimoku cloud. A close below this week would be very bearish indeed.
With the close of the EURUSD below the weekly cloud, the bear market has well and truly started…
With JPY trading strong given the uncertainty on the trade war front, it is a good countertrade to have in a portfolio that is risk-seeking. On the weekly CAD/JPY chart, it looks like good risk/reward to sell against the bottom of the Ichimoku cloud.