[music]
Hello everyone, Lton here with Verified
Investing back with another ProCharts
video and in this episode we're going to
be talking talking a little bit about
currencies. Um, but before I go any
further, please guys consider liking
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on your algorithm. With that being said,
guys, let's hop right into it and let me
go ahead and share my charts. Let's
start with the DXY, the US dollar. Um,
so the US dollar has kind of been
trading potentially, right? You see the
pattern head and shoulders pattern.
Boom.
Potential head and shoulders pattern,
right? And let me go ahead and draw that
out. Find that major move.
Something like this, right? With a major
move that would take you all the way
down.
Pardon me.
major move depending on where it broke
could take you back down to the lows
around $95.50.
Um, but taking a look at the chart and
zooming out, you could argue that, hey,
instead of a move down, we actually
favor a move higher, right? But in order
to move higher, we have to do a couple
things. First off, we've been
consistently kind of trading in in a
solid uptrend, right?
See if I can't pull this together.
Yeah, there's a nice kind of uptrend
that we've been trading in, right? Not
necessarily a parallel. I'm just using
this to kind of demonstrate like, hey,
this is the general trend of the way
we've been moving on the DXY, which is
bullish, right? and bullish in that it's
continued to go up, right? It's
continued to move upwards, right? Kind
of trading like this. One thing you
really don't want to do is break this up
sloping trend line or the bottom of this
potential parallel, which also coincides
with that previous head and shoulders
pattern that I talked about previously.
That's one thing we got to watch. But
you could say that hey well every single
time you know we come down even if we
break below we always rebound to the top
of this parallel in which case you would
be looking at the top of this trend line
somewhere around 102 103 right as the
key level of resistance which would kind
of coincide with this pivot high up here
back from
12th of May actually one day before my
birthday so around 102 to 103 you should
find some resistance. But the key things
I'm looking at on the DXY again,
this level here and then this kind of
trend line slash neckline of the head
and shoulders pattern [snorts] on the
DXY.
Moving on to that USD
euro,
you know, we did have a nice fall,
right? Nice fall from this potential
head and shoulders pattern, right? had a
nice move down, played out basically to
a T, right? But the question is, could
we see a bounce up in the USD compared
to the Euro? And are we already seeing
it? And I could I would argue that we
potentially could be on breakout watch
here on the USD euro having an actual
inverse head and shoulders pattern here.
Let's go and do some quick calculations.
Boom. Look at this with the major move
up about 1 and a half% up to around 875
right
875
US per euro.
You can see that nice clear
inverse head and shoulders pattern. uh
this would also coincide with all this
kind of sideways
uh action and previous support and
resistance where all this consolidation
around this 875 region. So this is what
I'm kind of targeting here for the USD
euro. If you're late to the party and
you want to get in on it, you could
potentially wait for what? You could
wait for a retrace and then look for a
move higher and then look to enter
somewhere on this downing trend line.
But ultimately, we'll need to see if the
USD euro does come back in for heading
higher.
Next up on the USD GBP, we have a
similar pattern, right? These charts are
similar, but not exactly the same. We
have a beautiful, look at this
inverse head and shoulders here as well.
But this is different in that it's like
almost a perfect little one here. But
it's the biggest difference is that we
haven't broken out yet, right? And this
one is one where you have the
opportunity if you like this pattern to
actually enter it right now, right? Or
in the next coming days. The major move
would take it basically to this pivot
high just around 753
a level that was going to put up
resistance anyway. So for me, this looks
like a good area to potentially enter
for a long and cash out for gain up
maybe 1 one and a half% right, which on
the larger time frame doesn't seem like
too much, but when you're talking about
currencies, that's certainly a decent
sized move.
Next up, um, USD JPY is something I am
targeting in. We saw boom, look at this
huge falls and we've created and
actually broke down from what type of
pattern and we've been talking about it
all day.
Head and shoulders patterns. And
[clears throat] in this case, this head
and shoulders pattern. Boom.
Right. Let's see that measured move. And
I have a feeling this is going to be a
gnarly measured move. Would be a move
down for the USD in comparison to the
JPY down to around 1465.
Right? 1465 key level of support uh down
here should this ultimately end up
breaking and falling further. One thing
to note, right? What do I always say?
And what do we always say here at
Verified Investing about head and
shoulders patterns? Well, there's two
places you can enter on the break or on
a retrace. You see that we broke down,
fell about 1 and a.5% basically the
major move of that USDGBP chart I just
showed you and retraced basically
perfectly to the neckline, providing us
an ample opportunity to potentially get
back in. If you want to get in and maybe
stop out on a close above 157, I
wouldn't blame you. You know, there
should be an opportunity to capitalize
on this if this pattern plays out.
A couple more for you. USD CAD uh USD uh
Canadian dollar again with these head
and shoulders, inverse head and
shoulders patterns. Not quite right. Not
quite a perfect one just cuz the left
shoulder doesn't really connect. But
still watching this ups sloping trend
line here. And on the other side,
watching this trend line here. This
beautiful trend line I had on the USD
CAD creating what's called a beautiful
wedge pattern. And on this wedge
pattern, it looks like we're actually
breaking up and out of this, guys. So
maybe consider an entry here or an entry
on a retrace looking for a move higher.
Looking for resistance somewhere around
this 1412
1412 1413 region for resistance. That
would be an additional move up
about 1 and a half%.
from current trading price.
And finally, USDCNY,
the Chinese yuan continues its gains
versus the US uh USD. And if we go to
the weekly chart,
you can see we're starting to come into
some key support stemming back from the
beginning of 2023.
This is the key level of support I'm
going to watch as it's been pretty much
a steady fall down about 8 or 9%. Should
the USDCNY come down here around 669,
that would be the key level of support
where you're expecting a bounce, maybe
about two to 3% bounce from there, I
would say.
With that being said, that's all I have
for you today. Again, my name is Lenho
here with Verified Investing. Thank you
guys so much for watching. Remember,
please like this video, comment, and
subscribe to the Verified Investing
YouTube channel. And I hope to see you
guys next time. Have a good one. Take it
easy. Bye-bye.