GBP/AUD traded lower today, after it hit resistance at 1.9220, near Wednesday’s and Thursday’s peaks. Although the rate is still trading above the upside support line drawn from the low of December 23rd, it has distanced itself from that line, while on the 4-hour chart, we see a possible “double top” pattern forming. For now, we will stand flat, but if the double top is indeed completed, we will turn our eyes to the downside, perhaps for a deep correction.
The completion of the pattern could be signaled by a dip below the 1.9095 zone, which acted as a decent support yesterday. If so, more bears could wake up and drive the battle towards the psychological zone of 1.9000, marked slightly below the high of January 17th. The rate could rebound somewhat from there, but if it stays below 1.9095, we would see decent chances for the bears to jump back into the action and push lower, perhaps bypassing the 1.9000 hurdle. Something like that could set the stage for the crossroads of the aforementioned upside line and the 1.8895 support, defined by Tuesday’s low.
Shifting attention to our short-term oscillators, we see that the RSI, although above 50, points down. It could fall below that equilibrium line soon. The MACD is also within its bullish territory, but below its trigger line, pointing south as well. Both indicators suggest that the pair has run out of positive momentum and corroborate the case for some near-term declines.
On the upside, we would like to see a clear and decisive break above 1.9255 before we start examining whether the prevailing uptrend has resumed. Something like that would confirm a forthcoming higher high on both the 4-hour and daily charts and may set the stage for the 1.9365 or the 1.9385 barriers, marked by the peak of December 17th and an intraday swing high formed the day before. Another break, above 1.9385, could extend the advance towards the 1.9515 territory, near the highs of December 13th and 16th.
JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.
72,99% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure
Recommended Content
Editors’ Picks
AUD/USD: The hunt for the 0.7000 hurdle
AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
EUR/USD refocuses its attention to 1.1200 and above
Rising appetite for the risk-associated assets, the offered stance in the Greenback and Chinese stimulus all contributed to the resurgence of the upside momentum in EUR/USD, which managed to retest the 1.1190 zone on Thursday.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Bitcoin displays bullish signals amid supportive macroeconomic developments and growing institutional demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.