Trading scenarios: AUD/USD, USD/CAD, USD/ZAR and USD/MZN

We are bullish of the USD as per our post on US Infation we think the Fed will act quicker in terms of cutting stimulus and raising rates quicker than the market expects You can read the post By Clicking Here If the USD does mount a major rally we expect weakness in the commodity currencies.

Below find our views in terms of AUD/USD, USD/CAD, USD/ZAR and USD/MZN.

USD/CAD

We have been bullish since the bounce from 1.200 which was huge monthly support and we have moved higher. We view the USD as having big support at 1.2300 and expect a move up to 1.2600 and then 1.2800. Speculators hold near the biggest short position in over a year and we expect them to get taken out on stop and trigger far higher prices.

AUD/USD

We have major resistance at 0.7600 and view the AUD as a sell-on rallies back to this level – on the downside a sell-off to new daily chart lows is expected to follow on down to weekly support at 0.7000.

USD/ZAR

The USD after bouncing higher is now trading sideways and we have a period of consolidation which we expect to end with an upside breakout. Speculators have sold the USD hard and have a large net short position which we expect to get hit on stop – we expect far more strength to correct the USD’s oversold condition.

USD/MXN

After falling hard the USD has found support and we expect a breakout above nearby resistance and the 20 day moving average To follow through strongly to the upside.

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