Once again we are seeing a tag of the channel lines in the GBPJPY, although prices managed to push through briefly. The channel trade has worked excellently on this pair over the past 6 weeks, although some caution would be wise as Tuesday’s extra large bullish candle may point to some bullish momentum. 129 is an important resistance area, and should be watched carefully.
The AUDUSD has essentially been locked in a trading range for all of October, and should be monitored. Attempts to breakout on both sides quickly reversed back to the consolidation area. The longer term trend is still very much bullish, but the inability to make a new high this past week signals a loss of upwards momentum. Additionally, today’s selling pressure suggests that sellers are taking over, and we may break out to the downside.
Resistance at 1350 held, and prices have retreated back to support at 1320-1330. The consolidation on support suggests we will breakout downwards, since buyers don’t appear to be able to push prices back up. Additionally, a bearish channel seems to be forming, which helps to identify ideal entry and exit points.
Written by bforex.com