Continue to Wait for EUR/GBP, AUD/USD Short Setups
AUD/USD entered consolidation mode having taken out resistance at the top of a falling channel set from April. The move hints a significant correction upward is ahead but follow-through has been lacking thus far. Still, the fundamental case for a corrective bounce remains reasonable. With that in mind, I will continue to look for a recovery as an opportunity to enter short (pending technical confirmation of ebbing bullish momentum).
EUR/GBP rebounded as expected after putting in a bullish Piercing Line candlestick pattern above support in the 0.8583-90 area marked by a horizontal pivot dating back to mid-February and the 38.2% Fibonacci retracement. The pair is now testing resistance is at 0.8636, the 23.6% Fib, with a break above that initially targeting the 38.2% Fib expansion at 0.8673. The weekly chart seems to outline the makings of a looming downward reversal but an actionable short trade setup is absent for now. I am monitoring the pair for a short entry opportunity.
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