EURUSD - Daily candles has broken a descending wedge pattern and is using the wedge as support.
There was a bullish divergence on the RSI
If the FED cut interest rates, or give an indication of a rate cut next month we could see a weaker USD.
This could give the EURUSD a significant move towards the 1.1600 area.
If the EURUSD makes it to that zone, this could...
The NZDUSD has bounced on a support level after previously forming a bullish divergence on the RSI.
This pull back has formed an inverted head and shoulders pattern.
We are now looking to go long on the pair with the first target being 0.6681
Short term the NZDUSD has created a bearish pennant formation - we could see the NZDUSD re-test the 0.6500 area
However, long term there is a bullish RSI divergence suggesting there could be some upside back towards the 0.6630 resistance level.
This will depend on the trade war/ RBA and RBNZ interest rate decision in the coming days
USDJPY has potentially formed a long term bullish pennant.
Trump has caused havoc yesterday whilst tweeting about Mexican trade tariffs.
Everything has dropped again the JPY. Could we see some relief next week?
If this is a bullish pennant, we could see the USDJPY rise above 112 in the long term.
Any thoughts or ideas welcome...
The USDJPY is approaching a key area in a symmetrical triangle at 108.90.
This provides opportunity to BUY back to roughly 111-112.00
The symmetrical triangle has provided support and resistance over the last couple of years.
Stop losses will need to be set outside of the triangular pattern at 108.40-108.00
EURAUD - on the weekly candles there is an inside bar similar to the one back on October 2018 before the reversal.
Looking to sell from 1.6300-1.6350 with a stop loss at 1.6430
Take profit looking at 1.6050
NZDUSD creating a bullish divergence on the daily RSI, similar to the back end of last year.
Currently pushing down towards a double bottom.
BUY - Take profit targeting the 38% FIB level of 0.6630
Stop loss set below the double bottom at 0.6380
140-139 is a key support level on the daily candles
Plan is to enter a smaller position now and add size at 139.30 if there is a break below 140.00.
Stop loss is set below 138.50
First resistance level of take profit level is 142.70 and 144 in extension
Double bottom on the AUDUSD
The pair are trading between a descending wedge pattern signalling a reversal.
The 4 hour candles are signalling a bullish divergence on the RSI
Watch for the break out
Buy positions with stop losses below 0.6960 first target of 0.7100 and 0.7200 in extension
GBPAUD is approaching the daily 200 MA at roughly 1.8040/1.8060 - This is also the 50% FIB retracement.
The pair are in a descending wedge pattern which is indicating a reversal, the RSI has also formed a descending wedge.
Entry for a buy at 1.8060 with a stop loss below the moving average at 1.7980
Target area of 1.8500 which is the 78% FIB