Skandinaviska Enskilda Banken estimated the most strength pairs to trade for the next week: EUR/CAD, EUR/AUD and NZD/USD:
- "Trends EUR is in a strong uptrend as EUR crosses are found among the top 9 trends. Stretches. The most stretched currency pairs are EUR/CAD (upside stretch) and NZD/USD (downside stretch)."
- "These should be extra sensitive for triggers of corrections e.g. data surprises. The currency pair with largest volatility compared to its average volatility is currently EUR/AUD."
- "This makes it a less attractive trend trade even if the trend in itself is among the top 3 trends."
Let's evaluate those pairs concerning the direction and strength factor of the trend.
EUR/CAD - this pair is on uptrend above 200-SMA for the primary bullish condition. The price just crossed 100-SMA as 'ranging border' from below to above and came to the bearish area of the chart. Nearest resistance levels are 1.4629 key resistance and Fibo resistance level at 1.4643.
EUR/AUD - this pair is having almost the same situation as the previous one: bullish by above 200-SMA with already crossed with 100-SMA 'ranging border'. Nearest resistance levels are the following targets: 1.5307 key resistance and Fibo resistance level at 1.5331.
NZD/USD - this pair is on primary bearish breakdown for now with 0.6452 the nestest bearish target. The price is breaking descending triangle pattern from above to below for the bearish trend to be continuing.
