EUR/USD, NZD/USD and USD/CHF Still Waiting for a Proper Signal

Today is Memorial Day in US and Spring Bank Holiday in UK which means the markets should be relatively quiet and we shouldn’t expect any rapid movements or major changes on most instruments. We will try to adjust to the current situation and in today’s analysis and show you three instruments which are still waiting for a proper trading signal.

First, we need to quickly update you about the situation on the EURUSD which we mentioned at the end of the last week. The price moved downwards as we had expected. Today we saw a breakout attempt of the 1.088 support level.  If the price closes the day below this line it’s considered a sell signal targeting the lower line of the triangle.

The next pair is the NZDUSD which is still in a sideways trend, so a big rectangle pattern. Most recently, we had an upswing aiming for the upper line of the rectangle and after that – a correction. The correction is shaped like a flag, so it’s promoting a breakout of its upper line and another test of the 0.616 level.

We’ll finish with the USDCHF where the price is also in a sideways trend and in a rectangle pattern but at the same time it’s in a bigger symmetric triangle pattern – yeah, I know, you’ve got to love technical analysis. For now, the price is bouncing from the upper line of the triangle, which may be a great occasion for short-term sellers. Buyers should watch this movement carefully. In case the price reverses and breaks the upper line of the triangle then we could get a buy signal. So far it seems like the second option is less likely to happen.

For a look at all of today’s economic events, check out our economic calendar.