GBP/JPY might be on its way to resume its climb, now that price has made higher lows while stochastic drew lower lows. The support at the pair’s previous week highs around 169.00 seems to be holding well.
However, a deeper retracement could still be in the cards, as the pair hasn’t quite reached the 38.2% Fibonacci level yet. This is in line with the 168.50 minor psychological level and yen pairs tend to react to these round numbers quite well.
Going long at market and setting a stop below 168.50 and aiming for the intraweek high at 170.00 could be a 2:1 return on risk, which is good for a day trade.
By Kate Curtis from Trader’s Way
EURUSD traded today I opened my position by selling when the price was 1.37892 and all indicators showed a downward trend, I checked the exponential moving average, stochastic oscillator and the Commodity Channel Index (CCI 50)
When the price reached the take profit order was closed and I made 217 00 pips in trading Forex online.
NZD/USD has been trading in a downtrend for the past few weeks but it appears that the pair is ready to break out. Earlier today, the RBNZ had its monetary policy statement and decided to keep interest rates unchanged at 2.50%. However, RBNZ Governor Wheeler hinted that they could hike rates soon since inflationary pressures are very strong.
With that, NZD/USD might have enough energy for an upside break above the top of the channel. The .8300 area is already outside of the channel resistance, which suggests that it might be a good entry level. Setting a tight stop of 50 pips back inside the channel and below the .8300 handle should provide the trade enough leeway.
Aiming for the previous highs around the .8500 major psychological resistance seems to be a reasonable target, providing a potential 2-to-1 return on risk.
By Kate Curtis from Trader’s Way
NZD/JPY has been on a steady uptrend on its 1-hour time frame and might be ready to push higher, given the RBNZ’s hawkish rhetoric in their latest interest rate decision. Although the central bank kept interest rates unchanged, they did hint that they could hike if inflationary pressures remain strong.
Right now, the pair is hovering at the middle of the rising channel in a consolidation pattern. Stochastic is still pointing up and moving towards the overbought zone, which means that there’s enough upward momentum left. A rally could take the pair from its current levels to the top of the channel while a selloff could still find support at the bottom of the channel.
An aggressive long entry could be set at market and aiming for the top of the channel while a more conservative entry could be set at the bottom of the channel and targeting the top of the channel.
By Kate Curtis from Trader’s Way
A double top pattern has formed on GBP/USD’s 4-hour time frame, indicating that the pair’s rally might soon be over. The pair seems to be testing the neckline around the 1.6300 major psychological support.
The pattern is roughly 100 pips in height, which suggests that the breakdown might be at least of the same size. Shorting at market with a 50-pip stop and a 100-pip target is a 2:1 return on risk.
Take note though that stochastic is already in the oversold region, which suggests that a bounce might take place first. If you’re aiming for a conservative entry, you could wait for a quick retracement to the 1.6350 area before shorting.
By Kate Curtis from Trader’s Way
AUD/USD is testing a key support level at the moment, as the .8950 level is in line with the pair’s lows for the year. Stochastic is pointing up, indicating a potential bounce but fundamental factors are hinting at further losses for the Aussie.
For one, the government’s outlook report revealed that officials are expecting a wider budget deficit for the incoming year. Although credit rating agencies haven’t announced any downgrades yet, many are worried that this might lead to spending cuts and tax hikes, which could be negative for growth.
Besides, RBA Governor Stevens has repeatedly emphasized his desire for AUD/USD to reach the .8500 handle. The FOMC statement is coming up and a decision to taper could push this pair lower.
A good way to play this setup is to setup a straddle, with a buy order above .9000 and a sell order below .8900. Having a wide stop is also recommended since a lot of volatility is expected in the coming days.
By Kate Curtis from Trader’s Way
On its 1-hour time frame, GBP/USD is trending lower, after forming a double top reversal pattern on its 4-hour chart earlier this week. The pair has since broken below the neckline around 1.6350, confirming the potential selloff.
Comments from BOE Governor Carney saying that QE is about to end have lifted the pair but it appears to be trading below a falling trend line. The pair could pull up to the trend line resistance around the 1.6300 major psychological level before resuming its drop. Stochastic is still climbing out of the oversold region indicating a quick rally.
Be mindful though that the FOMC statement is coming up and a decision to taper could send this pair much lower. Shorting at 1.6300 with a stop above 1.6350 and a target of 1.6000 could yield a 6:1 return on risk. Make sure to adjust your exposure prior to today’s major events though.
By Kate Curtis from Trader’s Way
AUD/CAD seems prime for a large correction on its 1-hour time frame, as the pair has found support around its recent lows around .9450.
The pair could pull up to any of the Fib levels marked, particularly the 61.8% level, which is in line with a former support zone. However, a shallow retracement is also possible until the 38.2% Fib, which is also close to an area of interest.
Stochastic is still pointing up, which means that there’s enough buying pressure to push for a retracement. Shorting at the 38.2% Fib with a stop above the 61.8% Fib could yield a good return on risk for a day trade.
By Kate Curtis from Trader’s Way
USD/CHF is still trending lower on its 4-hour time frame, despite the strong bounce seen after the FOMC interest rate statement. The pair has dipped to new yearly lows around the .8850 area and might be ready to test those lows again.
There’s a falling trend line connecting the price’s highs and the pair might pull up to that resistance area before heading any lower. This is in line with the .9100 major psychological level. Stochastic is already in the overbought region but hasn’t crossed down yet, which suggests that the pair could push a little higher still.
Shorting at .9100 with a 100-pip stop and a target of .8900 could be a 2:1 trade while aiming for the recent lows could be at least 2.5:1.
By Kate Curtis from Trader’s Way
GBP/USD has broken past the 1.6500 handle last December but failed to sustain its rallies until the start of this year. This suggests that a huge retracement might be in the cards, as the pair gathers more buying power.
The 50% Fibonacci retracement level lines up with an area of interest. As you can see from the chart, the level is also close to the 1.6200 major psychological support level.
Going long at 1.6225 with a stop below 1.6200 or the 61.8% Fib level could provide the pair enough leeway for a pullback. Stochastic is already in the oversold region, which means that sellers are already exhausted. Aiming for the 1.6500 mark seems to be a reasonable target and could yield roughly a 3:1 return on risk.
By Kate Curtis from Trader’s Way
USD/JPY is still on a strong uptrend, as seen from the rising trend line connecting the lows of the price on the 4-hour time frame. At the moment, the pair is testing the trend line around the 104.00 major psychological handle.
Stochastic has dipped and climbed out of the oversold region, indicating that a bounce might take place. However, a breakdown is still possible if dollar bulls are exhausted.
A break lower could last until the next support level at the 103.00 major psychological level while a bounce could go until the previous highs around the 105.50 mark.
By Kate Curtis from Trader’s Way
A double top has formed on EUR/USD’s 1-hour time frame and it seems that the pair has confirmed the potential selloff. It has broken below the neckline around the 1.3650 minor psychological level but is waiting for more selling momentum.
Stochastic is on middle ground at the moment, but is pointing upwards. This suggests that a quick pullback might still take place before the pair heads any lower. However, you can opt to enter at the break of the recent low around 1.3575 if you think the selloff will resume soon.
Shorting on a pullback to the 1.3650 area with a stop above 1.3700 and a target of around 200 pips, which is the same height as the formation, could yield a good return on risk.
By Kate Curtis from Trader’s Way
The downtrend on USD/CHF may soon be over as the pair already closed above the falling trend line on its daily time frame. As you can see though, stochastic has reached the overbought zone, which means that buyers may be getting tired.
However, the oscillator hasn’t crossed down yet, which suggests that there’s enough buying momentum. The pair could climb up to the next area of interest around the .9200 major psychological level.
Longer-term traders could aim higher and trail stops to protect profits.
By Kate Curtis from Trader’s Way
AUD/USD is testing a major support level, as seen on its daily time frame. The pair has previously bounced off the .8850 to .8900 area in the past but has formed a bearish flag right on that area.
Data from China and Australia have mostly been weaker than expected while RBA Governor Stevens continues to express his preference for a weaker Australian dollar. The event risk for today is the NFP release, which might be positive for the US dollar if it comes in strong.
If that’s the case, AUD/USD might make a strong break below support and trade to the next support area around .8600, which is Stevens’ ideal level for the pair. However, a weak figure might trigger a quick bounce, possibly until the near term resistance around .9150.
By Kate Curtis from Trader’s Way
GBP/USD is still on an uptrend, despite the sharp selloff that occurred recently. The pair has just bounced off the bottom of the rising channel on the 1-hour time frame as indicating potential rallies.
Stochastic is moving out towards the overbought zone, which means that further rallies might be short-lived, possibly until the recent highs around 1.6600 or until the top of the channel near 1.6700.
Going long at market with a stop below the channel and a target of 1.6700 could make a good return on risk for a short-term trade. Moving the stop to entry once price tests the previous highs can minimize exposure later on.
By Kate Curtis from Trader’s Way
After its strong selloff in the past few days, GBP/AUD seems ready to make a retracement to an area of interest. On the 1-hour time frame, it can be seen that the broken support level is right in between the 38.2% and 50% Fibonacci retracement levels, making it a good sell area.
Stochastic is still climbing though, which means that the pair has momentum to climb before resuming its selloff. Setting a short order at 1.8250 with a stop above the 61.8% Fib level and a target at the previous lows near 1.8000 could yield a good return on risk.
By Kate Curtis from Trader’s Way
Thanks to Australia’s weaker than expected jobs data, AUD/JPY finally broke below that short-term consolidation on the top of the falling channel on its 4-hour time frame. At the same time, the yen could continue to gain ground as risk aversion has been driving currency movements.
Stochastic is in the oversold region though, indicating a potential bounce, but this might only last until the top of the channel or the bottom of the box pattern.
Shorting at market with a stop above the channel or 100 pips and aiming for the bottom of the channel around 90.50 could yield a good return on risk.
By Kate Curtis from Trader’s Way
AUD/JPY is on its way towards the bottom of the falling channel on the 4-hour time frame. A bounce might be in the cards since stochastic is indicating deeply oversold conditions.
The pair could find support at the 91.00 major psychological level, which is in line with the bottom of the channel. If you plan to go long at this area, set your stop below the bottom of the channel or below the previous lows.
Aiming for the middle of the channel could give at least a 1:1 return on risk while aiming for the channel resistance around 93.00 could mean a 2:1 return on risk.
By Kate Curtis from Trader’s Way
We are close to the weekend.
And, I also think that the Aussie is coming to a major support here.
So, we can expect some bounce in the AUDJPY, as the USDJPY is still positive according to me.
Monday, I will have a close look at the charts and decide what to do.
I think the AUDNZD is also starting to look good.
Not sure though, but the pair is on my watch list for sure.
So, let’s see how things go from here.
Cheers!
USD/JPY has confirmed the potential downtrend, after it made a retest of the broken trend line support last week. This could mean that further losses are in the cards for the pair.
Take note though that stochastic already reached the oversold zone, indicating that a bounce is still possible in the near term. If you’re looking to ride the downtrend, you can sell at market with a stop above the retest of the trend line. Aiming for the previous lows can still offer a 1:1 return on risk, good enough for a short-term trade.
If you’re bullish on this pair though, a bounce could take place once the pair tests the previous lows around the 103.00 major psychological support level.
By Kate Curtis from Trader’s Way
