AUD/USD in symmetrical pennant, NZD/USD in ascending triangle, Turkish lira in freefall? [Video]

Brad Alexander FX Large Limited

Welcome to today’s Market Blast.

Today we will take a look at Forex Trading on the FTSE100, Gold, XAUUSD, NZDUSD, AUDUSD, USD Index, and USDTRY.

If you caught the news today, there was a major court ruling followed by a massive sell-off of stocks and Turkish government bonds.

This weekly chart on USDTRY tells the story with one-way price action for almost 3 years.

Is there a trade here, you ask?

If we look at the hourly chart, we can see some predictable price action at the start and end of every trading day, but be careful.

To see a reversal, we will need some major news out of Istanbul, but don’t hold your breath.

The USD Index has been flying lately, and we saw volatility on Wednesday around the FOMC minutes.

After that, investors had a sense of confidence, and the surge in bond yields seems to be subsiding.

This has seen USD consolidating.

You will find similar-looking price action on many USD major pairs like this sudden consolidation into a symmetrical pennant on AUDUSD.

You may find some range trading opportunities on lower time frames.

As well, price action on NZDUSD is forming an ascending triangle.

Speaking of triangles, we see a descending triangle on gold, maybe as price is trying to establish a level of support.

We are seeing a sell-off on gold due to profit-taking and renewed interest in equities.

This has benefited many stock indices like the UK’s FTSE100, which has rallied during the last 2 weeks.

However, we note that price action has formed a rising wedge, which is a bearish pattern and, considering the turmoil in the UK government and the state of the economy, this should not be ignored.

That’s all for now.

CFDs and FX are leveraged products, and your capital may be at risk.

Author

Brad Alexander

FX Large Limited

Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.

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