Steering away from the FOMC insanity later right this moment?
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 pattern pullback forward of the Australian CPI launch. You’ll want to take a look at if it’s nonetheless a sound play!
And now for the headlines that rocked the markets within the final buying and selling classes:
Recent Market Headlines & Financial Information:
U.S. CB client 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 value 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 client 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 Forex Warmth Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
GBP/AUD 1-hour Foreign exchange Chart
Don’t look now, however this pair is already testing the very high of its channel!
This occurs to be proper smack in keeping with a confluence of inflection factors that would preserve beneficial properties in verify.
For one, it’s proper across the 50% Fib and the 1.4700 main psychological resistance. This additionally strains up with the 200 SMA dynamic inflection level 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 affirm that bearish vibes are current and will preserve the downtrend going.
In that case, GBP/AUD might make its method right down to the swing low at 1.7200 or the channel backside nearer to the 1.7100 degree.
Earlier right this moment, Australia printed barely weaker than anticipated inflation figures which might dampen RBA fee hike hopes. Nevertheless, it’s additionally value noting that the Land Down Beneath is on significantly better footing in comparison with the U.Okay. economic system for the reason that latter could be getting ready to a recession.
With that, there might be room for some draw back for this pair, particularly if risk-taking picks up in a while.
Good luck and good buying and selling!
