The GBP is still at the top of the Daily strength meter v CAD which has dropped below the zero line the past 3 days indicating a push up for GBP.
The problem here is that GBP has been attempting the move the past month and keeps being restricted in its advance.
A break and close above 1.7100 should provide clarity to the upside for the time being.
GBPJPY is having a real problem deciding which way next. GBP has been gathering strength with contracts increasing to the upside in recent weeks and the JPY is gathering attraction due to uncertainty again.
Keep an eye on this area and let it play out before jumping !!
Did you trade the double top ?
Nice double top formation at resistance level provided a simple trade to the downside which is now at a support level wondering what to do !
President Trump giving a speech today so there may be some clues after that.
There is potentially a short term pull back and then economics should push the Euro lower for the time being...
Looking at the Monthly cycle is there potential for a high to be created before the upcoming election ?
If the conservatives retain their lead at the polls and the Brexit Party refrain from contesting every seat, we could well see a cycle high form at previous structure level around 1.4200 towards the end of November.
NZDUSD on the weekly timeframe looks to create a closing bearish engulfing candle.
With data from the US still topsy turvy / if, but, maybe a trade deal, then the uptick in NZD may have to wait a while until it finds buyers at a lower level around the 0.6090 August 2015 spike.
Trades to the long side of NZD are increasing but the strength in USD may well keep it...
Lots of data this week for GBP. Watch out for GBP figures and interest rate decision on Thursday starting from 8.30am GMT UK time with Halifax House Prices.
This data packed day could provide the direction for the rest of the month by the time of the US open.
From our previous forecast, EURGBP has another lower step to go to reach the April 2019 low and major support level,
You can never predict politics so keep your eye on this currency for price action from news events regarding Brexit.
There should be good trading opportunities over the next few weeks.
NZD at a decision point or is it USD weakness ?
This pair is registering at the opposite ends of the daily strength and weakness table which could present some trend opportunities going forward.
A close below the previous daily candle could show a break of support with short setups. A close at the present level then PA to the upside with a close above 0.6490...
USD & CAD are suffering bad data outputs and lack of demand for oil.
We could see this market testing the bottom of the short term range around the 1.315 zone looking for direction.
Further drop in manufacturing data could see further downside.
CADCHF could see a retracement down to the 0.7444 zone area after double topping on D1 before resuming a bullish stance.
US stock inventories haven't helped the bulls !
Watch the PA if the 0.74 lows get taken out
HAVE WE REACHED THE SUPPORT AREA FOR A SHORT TERM PULL BACK TO THE 0.905 ZONE ?
POLITICAL ACTIVITIES AND BOE HAWK TURNING DOVISH COULD PULL THE EURO UP BUT WE STILL SEE THIS MARKET BEARISH ON THE MEDIUM TERM TO THE BOTTOM OF THE RANGE AROUND 0.85 ZONE
We are still short this market whilst JPY is still showing strength and AUD at the opposite extreme. However, watch this market in the next few weeks for signs of reversal when the 71.00 zone has been reached.
A big change in risk would be needed to move this market beforehand.
RSI AND RESISTANCE LEVEL SHOWING POTENTIAL FOR GBP TO REVERSE TO THE BASE OF THE CHANNEL AROUND 1.82 ZONE.
WITH ALL THE POLITICS SWAYING THE PRICE ACTION IN GBP IT IS MOST LIKELY GOING TO BE A STEADY DECLINE OVER THE NEXT 7-8 WEEKS IN LINE WITH PREVIOUS WEEKLY CYCLES.
AudJpy is in a weekly and daily downtrend. Price has pulled back to the previous structure lows of June 2019 and could possibly continue its bearish journey.
If todays candle closes as a bearish pin bar it is quite likely to to test the 72.52 area, previous structure highs.