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- In this webinar, we used price action to look at macro markets after a rather busy few weeks in the FX-space.
- The first market we looked at was the U.S. Dollar, as the 2017 down-trend ran into a string of gains over the past week. Those gains pushed prices into an interesting point of resistance, off the mid-line of a bearish channel; and since then we’ve seen sellers pushing prices-lower. This opens the door for short-side continuation, and as long as DXY remains below the 94.08-94.30 resistance area, the bearish theme can remain as attractive.
- On that bearish theme, the topside of EUR/USD can remain as attractive. The pair is working with an interesting zone of support that we looked at quite a few times over the past couple of weeks, and after first interacting with that zone, buyers have begun to show-up to push prices higher. This can open the door for bullish exposure in the pair.
- We’ve also been following GBP/USD for short-USD exposure. The British Pound put in a significant topside pop after the Bank of England rate decision earlier in the month. In the immediate aftermath, we saw numerous tests of higher-low support at the Fibonacci level of 1.3478; but this eventually gave way as sellers pushed prices-lower. In our technical article on the pair, we were following support zones around 1.3350 and 1.3250; and at this point we’ve seen buyers respond to support at the 1.3350. On short-term charts, there’s a batch of resistance that runs from 1.3450-1.3478 that could make the bullish setup considerably more attractive should buyers show a willingness to take this out.
- On the long-USD side of the coin, we looked at USD/JPY which is sitting at an interesting support level of 112.43. This is the top-end of a resistance zone that’s been in-play for much of the year, and after prices tested the 113.00 level yesterday, we’ve seen higher-low support begin to show around this prior point of resistance. This can open the door for bullish exposure in the pair.
- Also on the long-USD side, we have potential short exposure in AUD/USD. After Phillip Lowe’s speech last Thursday, Aussie has had a difficult time mustering buyers or demand, and prices just sank down to set a fresh low. There’s a resistance zone currently sitting above price that runs from .7929-.7946; and a revisit here can open the door to short-side exposure.
- We also looked at USD/CAD, which appears to be in the midst of a corrective move after a really aggressive bearish trend. Prices are currently breaking above a bullish channel that’s part of a longer-term bear flag formation, and this gives the appearance of deeper retracement potential before the bigger-picture bearish trend is ready for resumption.
- We lastly looked at GBP/JPY and EUR/JPY. My preference would be EUR/JPY at the moment, and I published an Analyst Pick on that setup yesterday.
--- Written by James Stanley, Strategist for DailyFX.com
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