In the decision fallout, price has spiked up to test the GFC low line we have marked on our chart and was rejected quite hard. That level and the gap level that we highlighted yesterday might get some attention near term, but they have to be seen as selling opportunities, surely.
More GBP charts in the Vantage FX Daily Market Update.
Sellers have paused at this support level. Not sure if you should be too keen to catch this falling knife here though. There feels like a lot of momentum behind last week’s Kiwi selling.
A market where everyone is expecting the RBA to cut in August. Waiting for the minutes to spoon feed them that a cut is guaranteed. That was always going to disappoint in some fashion…
So the minutes are released and the spoon feeding dovish rhetoric wasn’t enough to satisfy and he first level of support that price pulled back to (the channel bottom) was bought.
Again, looking at the technicals on the 4 hour SP500 chart from our Vantage FX MT4 platform, I still can’t make a case for a consistent pullback here either.
Intra-day, price is still in the midst of a strong bullish trend, with momentum still obvious following the break-out to record highs the other week. Price now continues to drift sideways in a bullish flag: A reliable continuation pattern as highlighted in the Education Centre of the website.
This is not yet the safest time to get down onto the train tracks and jump in front of momentum.
Bulls, be aware that price has rejected off weekly trend line resistance, but as always, I’m viewing this higher time frame line as highly subjective. A few charts I’ve seen around the place have all used different points to draw their trend line so view it as a zone rather than a hard level.
The AUD/USD hourly shows what seems to be a bit of an equilibrium level. Zoom out and you can see that it is basically the midpoint of a range and a visual representation of a market full of traders not willing to position themselves heavily one way or the other.
Zooming into the hourly chart, the one level that clearly stands out heading into the release is the above marked spike off which price rallied hard the last time it was tested from above.
Chart to be viewed in the bullish context you can read more about in our RBA preview.
The size of the stimulus package was enough for the bears to take control of Cable, with the short term trend line never going to hold following news such as that. Again there still aren’t the levels down here so both technical and fundamental uncertainty make trading GBP pairs tough.
In an Olympic theme, today we take a look at GOLD!
We’ve been posting about looking to trade the bounce off support in the hope of getting in early for a break-out of the major trend line resistance level.