Matt Simpson, CFTe, MSTA
CityIndex
UP NEXT:
TECHNICAL ANALYSIS:
GBPUSD: Seeking to fade the 'fakeout'
Whilst a break above 1.5740 would confirm a Double Bottom I doubt it would reach the projected target of 1.590 due to the cluster of resistance around 1.579. In fact I would go as far to say any break above this level is likely to be a 'fakeout' and warrants a fade into the move to hop on-board the clear bearish trend.
We have enough data out tonight for some volatility and nervous price swings before a directional move takes place so fading into rallies is my preference.
Unless of course we see dire data from the US which would support GBPUSD.
AUDNZD: Sits tightly - awaiting breakout
Whilst not related to tonight's events (directly at least) the commodity cross sits at an interesting level. 1.0940 was previous support and now acts as resistance, with a break below 1.091 confirming a resumption of the downside break.
A sell-stop below 1.091 would catch a downside break, but to increase your reward to risk ratio (whilst adding potential to miss the move) would be to place a sell-limit closer towards resistance and a stop above 1.0940.
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