Forex Blog

WEEKLY OUTLOOK 8/23/10

By Abe Cofnas

THREE CURRENCY PAIRS PROVIDE GOOD TRADING THIS COMING WEEK

This week I want to highlight currency pairs that are likely to move and are the least “noisy” as the week starts.  The general idea is that the best trading occurs when the price action is probing or breaking Support or Resistance, or is likely to.   There are three pairs that offer these prospects.   Using basic Resistance and Support lines, we can see the trading opportunities.

USDJPY

The Dollar Yen has been facing major support at the 85 level.  While chatter is increasing about Bank of Japan intervention, the geometry of the price action suggests that there will be a lot of oscillation around 85. This represents good short term scalping when it reaches resistance or support.  We can also make a good case for taking a Long position and playing a breakout on the long side.  If the USDJPY moves it will move strongly. (Click chat to enlarge)

USDCHF

This pair is right at Weekly support. Traders should focus on a confirmed breakdown or failure to break the 1.0250 support.  (Click chart to enlarge)