Originally Published On PriceWorksFX.com
Just a couple of days ago, I wrote post on two pairs worth shorting. And I still have my mind made up about these two pairs.
Hitting a supply zone once again, it is on its way back down. The U.S. economic releases are heavily influencing this pair at the moment causing the somewhat expected drive upwards. However, this pair is heavily overbought and should be on its way down to the 0.8745 price zone. This pair finally hit the January, 2014 high zone and it is not expected to go any higher. In fact, depending on the time frame, this pair could be treated as trending or ranging. Still too early to tell, it looks like it could be ranging if factoring in the January, 2014 high. Still, trend support is found in late April, 2014. The rapid growth deviating away from the trend line is bound for a correction especially when this pair is already overwhelmed with buyers. The last 12 hours shows some heavy selling, but this could all be just a matter of closing out previous longs. It is best to give to see some confirmation only if tomorrow closes lower.
Another pair that's refusing to give up is the USDCAD. Although this pair reached highs to almost 1.13 earlier this year, this pair is also due to reverse. Looks like the double top earlier didn't go so well. I guess we will be faced with a potential triple top before it goes any lower. Once again, it looks like it will close lower today, but still a good idea to wait for a lower close tomorrow before doing any serious selling.
The USDCHF and USDCAD are two pairs heavily overbought. They are manipulated mostly based on the U.S. economic releases and not so much the Russia-Ukraine tensions. I wouldn't vouch for EURUSD to reverse any time soon because there are just too many factors. Not much can be said about that pair other than it will continue to take its course. These two pairs being recommended to sell are rather stable and less prone to be affected by the news.
