As feared in the last update, FX is on hold for next week. This is bad for trend and swing traders, but may offer an opportunity or two for short-term trades. The Dollar-Index (DXY) fails to make much progress above the 104.64/63 support zone. Yesterday's smallish interim rally was already over at 105.82 just ahead of the 106 resistance. It is to be expected that not much will change in this sluggish market today. In any case, the economic calendar is pretty empty.
AUDUSD -- 0.6729
The currency pair is trading along the mid Bollinger band (0.6719) within a small upward trend. Ultimately, the 200 (0.6912) and 50-day (0.6628) moving averages continue to converge. The larger directional decision should therefore be getting closer every day. Protagonists who expect a more positive risk sentiment towards the end of the year should probably also count on a firmer Aussie. The opposite applies to the other side.
USDCAD -- 1.3657
The Dollar is trading along the upper Bollinger band (1.3685) against the Canadian Dollar clearly above the decisive moving averages and the mid Bollinger band. The big question is whether or not the major resistance zone at 138/140 ends the recent uptrend to form a double top. At current spot levels I see no urgent need for new positions. The buy zone is around 1.3475/50. On the other hand, you may look for shorts in the direction of 138.25/50.
USDCHF -- 0.9424
Major support comes in at 0.9371 together with the lows at 0.9327 and 0.9331 on Friday and Monday. These supports have to hold to prevent a deeper correction to 0.9200/0.9150 (march and feb lows). Rallies towards the green ascending trend line (0.9553 ish) and the upper Bollinger band (0.9572) may deliver opportunities to sell again. Above the 50 ema (0.9636), shorts are at risk.
Good luck,
Sebbo