GBPAUD: Finds support at 10-day sMA

As to be expected on a Monday with little news, trading was relatively subdued across the board

• NZDCAD provided one of the cleaner charts to continue gains from last Friday, following poor employment data from Canada.

• AUDNZD remained above last week’s lows and above critical support

• NZ homes saw a modest contraction of house prices at -0.3% but above the previous rate of -1.2%.

• JPY revised industrial production beat estimates to come in at 0.7%,a 2-month high

Bank of Japan began its 2-day policy meeting today which initially saw the Yen lower

UP NEXT:

• EUR industrial production is expected to grow at a slower rate. However as German and French industrial production are released earlier and account for 50% of the Eurozone Economy, it has already provided us an indication of today’s number.

• Draghi’s speech will be used for clues in regards to future monetary policy. With EURUSD clearly within range and restricted volatility EURUSD is best left for the lower timeframes until more direction (and volatility) presents itself.

TECHNICAL ANALYSIS:

GBPAUD: Finds support at 10-day sMA

This follows up on a post form last Thursday but the setup is essentially the same. Price has continued to respect the internal trendline (between the 1.775-1.836 sideways trading-range). Due to the range being well established I expect a price reaction at the highs if we make it there, so have decided not to try and anticipate a bullish breakout just yet.

Thuerday’s candle closed with a long-legged Doji which respected the 1.816 support level to suggest a swing low has formed. Whilst we remain above the trendline then you could considering entering live at market above the trendline, or setting a buy-limit to achieve a [potentially] higher reward/risk ratio.

A break of the trendline invalidates the setup and will be put aside until we see a direct break below 1.080

GBPCHF: A good candidate for ‘buying the dip’

Since breaking to new highs GBPCHF has floated down towards support and now very much in my bullish watchlist. The higher-highs and lows are well formed and volatility has reduced enough to warrant a buy-stop (something I rarely do these days).

If we break below 1.525 then we may find stringer support at 1.5126 as this is the 50-day/200-week MA. Until such an event I can only assume the near-term bullish trend will continue.