EUR/USD, AUD/USD, USD/CAD: Waiting For Better Levels - Morgan Stanley
In its weekly technical charts of the week, Morgan Stanley picks EUR/USD, AUD/USD, and USD/CAD where MS outlines some important levels where traders should consider engage with pairs and placing their stops accordingly.
On EUR/USD technical setup:
"Our outlook remains bearish on EUR. We believe that in the short term a 5-wave impulsive structure has formed which is correcting. We like to sell and put a stop just above the high at 1.1050 since a move above here suggests that the upside momentum in EURUSD could send it towards 1.15. 4-month," MS advises.
On AUD/USD technical setup:
"AUDUSD has continued to trade within a range since February, making a new low of 0.7533, and we are waiting better levels for shorts. Part of a 4th wave correction, a large move above the top of the channel around 0.7940 would suggest that the 4th wave is incomplete and has potential to rally further. We suggest selling around the 0.7950 level for short-term trades but keep a tight stop. 6-month," MS adds.
On USDCAD technical settup:
"We show this USDCAD chart again now that the key 1.2400 bottom channel support has been broken. This caused an accelerated move lower in USDCAD, which now risks a larger retracement. A correction could take USDCAD towards the 38.2% retracement level at 1.1990.We continue to monitor and wait for larger dips towards the 1.18 area to buy again to hold over the medium term," MS advises.
