Steering away from the FOMC insanity later at this time?
Right here’s a easy pattern setup that doesn’t contain the U.S. greenback.
Earlier than shifting on, ICYMI, yesterday’s watchlist checked out AUD/USD’s trend pullback ahead of the Australian CPI release. Be sure you try if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final trading sessions:
Recent Market Headlines & Financial Information:
U.S. CB shopper confidence index fell from 98.4 to 95.7 vs. 97.3 forecast
U.S. new residence gross sales slowed from 640K to 590K vs. 663K consensus
U.Okay. BRC worth store index jumped from 3.1% to 4.4% in July
Australian quarterly headline CPI slowed from 2.1% to 1.8% vs. 1.9% anticipated
Australia’s trimmed imply CPI held regular at 1.5% as anticipated
German GfK shopper local weather index slipped from -27.7 to -30.6
U.S. headline and core sturdy items orders at 12:30 pm GMT
U.S. pending residence gross sales at 2:00 pm GMT
FOMC financial coverage assertion at 6:00 pm GMT
FOMC press convention at 6:30 pm GMT
Use our new Currency Heat Map to rapidly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
Don’t look now, however this pair is already testing the very prime of its channel!
This occurs to be proper smack in step with a confluence of inflection factors that might hold positive aspects in verify.
For one, it’s proper across the 50% Fib and the 1.4700 main psychological resistance. This additionally traces up with the 200 SMA dynamic inflection point and former help zone.
Are sellers more likely to hop in quickly?
Technical indicators are suggesting so, because the 100 SMA is beneath the 200 SMA and Stochastic is beginning to flip decrease from the overbought space. These verify that bearish vibes are current and will hold the downtrend going.
In that case, GBP/AUD may make its approach all the way down to the swing low at 1.7200 or the channel backside nearer to the 1.7100 stage.
Earlier at this time, Australia printed barely weaker than anticipated inflation figures which may dampen RBA price hike hopes. Nevertheless, it’s additionally price noting that the Land Down Underneath is on significantly better footing in comparison with the U.Okay. financial system for the reason that latter may be getting ready to a recession.
With that, there could possibly be room for some draw back for this pair, particularly if risk-taking picks up afterward.
Good luck and good buying and selling!