Price action has been choppy across most FX pairs and it appears, with many of them hovering near major S/R levels, that they’re trying to decide which way to head next! Sentiment has clearly been ‘risk off’ of late but US stocks attempted a late recovery and Alcoa has just reported decent earnings to kick off this new earnings season; it posted increased sales and a beat on earnings but missed on revenue. Thus, a sentiment shift across stocks and FX could easily evolve. With many FX pairs at major S/R levels traders should keep an open mind about which way they head from there.
TC Signals:
EUR/AUD: that 1.55 has acted like a magnet for price action. This signal has closed off now after peaking at 550 pips. Don’t write off the AUD. Remember, this is a major S/R level for this pair. Price is holding above 1.55 for now but traders really need to see a weekly, and then monthly, close above this level to be confident about which side of this border the EUR/AUD will continue to trade:
Kiwi: this signal is still open but has done little. I’m not keen on this and I’m looking for a bounce to, at least, test the previously broken trend line.
USDX daily: the US$ is still trading under the key 100 level and is now consolidating within a triangle under this resistance:
Gold weekly: this has dipped back below $1,100 with the US$ strength. Keep an eye on the bigger picture though and those wedge trend lines:
Forex: watch today for impact from GBP Manufacturing Production data and a BoE Gov Carney speech as well as a BoJ Kuroda speech.
E/U daily: this is also still consolidating. Watch for any trend line breakout that evolves with momentum:
E/J daily: hovering above 126.5 S/R. This is the threshold level to watch for any new move…up or down:
A/U daily: as for the E/J but 0.69 remians the level to watch:
A/J daily: looks like it will print the first bullish coloured candle in seven days. It’s an ‘Inside’ candle though meaning ‘indecision”.
Cable daily: the 1.46 level is the one to watch here.
U/J daily: the 117 is providing support for now and remains the level to watch. This has also printed the first bullish candle after in six days. It, too, looks to be an indecision-style ‘Inside’ candle though as well:
GBP/JPY daily: as for the U/J, will print the first bullish candle in six days and this is also an indecision-style ‘Inside’ candle:
USD/CAD 4hr: holding above 1.40 S/R whilst Oil keeps tumbling.
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