Charts to Watch:
- GBP/USD coiled up for a move to soon unfold
- AUD/USD is trading down into major support
- USD/JPY is backing down into trend support
GBP/USD bounced off support yesterday just prior to the BoE, and drove further higher in the wake of the meeting. The rally doesn’t mean much so far, though, as price remains well contained within a developing wedge that is seen as leading a meaningful move soon.
A break above 13173 could get the upside going, while a break below 12954 may perhaps be even more meaningful given how much support between there and the 13000-line we have seen this month. For now, patiently waiting for its cue.
GBP/USD Daily Chart (coiled up, ready to make a move)
AUD/USDhas been tanking quite hard, and at the time of this writing it is testing major support under 6700. It’s been an extended move to the downside, and on that it might be on the oversold side. However, waiting for bullish price action to first come in looks like the prudent play. A break below 6671 will have Aussie at it’s worst levels since 2009.
AUD/USD Daily Chart (at major support)
USD/JPYhas been backing down slowly towards the 200-day and rising trend-line from the August low. It reversed yesterday from just above it, but could do some more probing before trying to solidify it as support. Should USD/JPY break through and selling accelerate it likely means we are also seeing more de-risking in the equity markets.
USD/JPY Daily Chart (support just below)
For all the charts we looked at, check out the video above…
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
