Forex trading short on GBP/USD – More to move on the DAX (DE40)? CAD employment in focus [Video]
|If you caught our last video we spotted a gap trading opportunity on the DAX.
The signs were all there with the stochastic oscillator turning up and eventually the signal line passed out of the histogram on MACD.
Today, price action filled the gap but we need some confirmation that the rally will continue.
The US indices showed us similar moves as we were looking at buying-the-dip on the S&P500.
However, watch the technicals and the fundamentals as many analysts are not sure that the big money has finished unwinding the JPY carry trade.
We see a short opportunity on GBPUSD with price action reaching the upper trend line in this week ’s-old bear run.
We will wait for confirmation and a downturn from the severely overbought stochastic oscillator.
We looked at the current change in JPY and the recent weakness.
We now see rising wedges all over the place which is a bearish sign so watch the fundamentals as well.
CAD pairs are mixed right now which may make for great trading opportunities as we have Employment Change from Ottawa today.
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