Some currency pairs will push through if they break a significant support or resistance. If not, they will bounce back or at least slow down before approaching these lines. Those well behaved pairs are more predictable. Even if you lean heavily on fundamentals, these lines will help. In some currencies. Some other ones are just a nightmare."
- AUD/USD: The Australian dollar has suffered significant losses, but the behavior has improved and earned it the first place. The pair enjoys ranges which are highly respected, like in the days when it was on the rise, and very nice channel behavior. When an uptrend or downtrend channel is broken, no matter in which direction, the moves are significant and the pair “remembers” old lines. These characteristics come despite sharp moves.
- GBP/USD: The pound also has high volatility, and also enjoys clear channel behavior. Moves are wider and require wider stops, as always, but they are not as wide as beforehand, hence the second place. Q4 will likely see further sharp moves, but after the long term range was broken, predictability is likely to remain relatively high.
- EUR/CAD: This cross is often overlooked, but has an interesting pattern – in the long term, it trades in a range, but this isn’t choppy and nervous but rather quite cyclical, similar to a wave. When it stalls, it maintains plausible range trading. Note that both the euro and the Canadian dollar are far less predictable against the greenback, but they find an interesting balance against each other.
- NZD/USD: The kiwi had healthy rises, then some range trading, in which ranges are moving lower. All in all, big breaks mean trading in separate ranges. These are not as clear as in its neighbor, but they’re not bad.
- USD/CHF: Last but not least, the Swiss franc is still relevant for this list. The huge intervention by the SNB sure knocked out a lot of trades (although there were warning signs) and also knocked it down from the first place. Nevertheless, it still has relatively clear ranges, with support lines better respected than resistance lines. If the SNB will be satisfied after this move, the pair can move higher on the list.
