On the currency market, after a ‘quiet’ month of June when it comes to trading the European currency – or, at least, some moves we should avoid – July was all about following the major trends already running. All the attention was then around the Australian and the New Zealand dollar while their values kept decreasing against the US Dollar. In fact, almost all the NZD crosses just kept reinforcing this weakness as the charts showed continuous lower lows. By the end of the month, the NZD:USD started stalling when it hit a major support level around 0.66 reaffirming the support seen in June 2010 and August 2007.
The British Sterling crosses also proved to be good options to place the orders. The weekly charts kept on presenting buying signals as the trends just kept on moving further to the upside.
As for the Indices, Europe started showing some (shy) signals for returning to the overall uptrend from the beginning of the year. CAC and DAX finally broke the retracement flag pattern and broke the (down) trend line. On the American side, Nasdaq was the only one breaking to the upside reaching new high levels at 4693 while, on the other hand, the Dow and the S&P stayed within the range from the previous 6 months.
The surprise this month was the Gold price after it dropped from the major support level at 1180 and kept falling all the way to 1077. Now holding around the same level.
Crude Oil also broke to the downside after the range in May and June. Still holding above the previous support at 43.
Best Trades in July
- AUDUSD (Daily Chart) – Breakout Short – 03.07.2015 – As price was hitting the support level at 0.76, we were waiting for the breakout to the short side. Taken on the 3rd this trade is now at around +2% profit. As usual we recommend protecting your capital.
- USDCAD (Daily Chart) – Continuation Long – 14.07.2015 – After the confirmed higher highs and higher lows, the pullback to the moving averages along with an engulfing buyer bar was the perfect excuse to take this trade. Currently at +3% profit.
Current opportunities – these are hypothetical trade setups and not all trades will trigger or setup. It is important to seek guidance on trading these setups before risking your own money. Below are the current USD:JPY and the S&P weekly charts.