Morgan Stanley picks USD/CAD, and EUR/USD among its technical FX charts of the week where MS remains bullish and looks for new buying opportunities on the former, and bearish and looks for new selling opportunities on the latter.
MS provides some important levels for these potential trades where investors following technical strategies (Elliott-wave-analysis) should consider entering these trades, and placing their stops and targets accordingly.
On USD/CAD set-up:
"We believe that USDCAD has started a bullish impulsive structure from a low of 1.1926. The current 3rd wave is also in the iiird sub-structured wave indicating that there is some further upside in the coming days, before we would expect a dip," MS projects.
"We would use this dip to buy. Our interpretation is incorrect on a move below the 1-wave high at 1.2255 where we would put a stop," MS advises.
On EUR/USD set-up:
"The 5 th wave in EURUSD completed with a high at 1.1447. EURUSD has retraced to the 61.8% level of this move at 1.0881 and is currently trading around this area," MS notes.
"We suggest selling on current rebounds in the 1.10 area with a stop around 1.12, just above the ii wave peak. The levels we watch to the downside are 1.0670 (2-low) and then 1.0550 low (the b-low)," MS advises.
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