Forex trading long on GBP/USD, US indices rally on US government shutdown good news [Video]

In today’s Market Outlook, let’s take a look at Forex Trading on AUDNZD, AUDCAD, the S&P500, GBPNZD, and GBPUSD.

Last time we were looking at a long trade on GBPUSD after the BoE Rate Decision.

And look what happened.

On the 1-hour chart, we see price action at the lower trend line of a bull run that started 6 days ago.

However, be aware that this technical indication is not shared on every time frame.

For example, on the 4-hour GBPUSD, we see an overbought stochastic oscillator, but it is clearly not convinced of a downturn.

And MACD is looking bullish still.

On GBPNZD, we are seeing an uptrend from the end of last month, a bullish stochastic oscillator, and resistance above at just below $2.35.

Again, check other time frames.

Rumours of the US government shutdown ending have rallied the US Indices, but we saw a slight pullback this morning.

Technicals on the daily charts show bullish price action with price bouncing off the lower trend line yesterday after this hammer candle on the S&P500.

But, don’t forget…anything can happen under the current US administration.

Speaking of the fundamentals, we have holidays in the US, Canada and Europe, so markets may be a bit quiet.

Thursday and Friday will be quite important for the US Federal Reserve, as we have lots of CPI, PPI and Retail Sales data coming out, and this will affect USD, Gold and Silver.

We have Australian Employment data on Thursday as well, and if we look at the charts, we see that if we get a pullback from the news on AUDNZD, we may have a long opportunity.

The opposite may be true on AUDCAD as we see a clear downtrend, price action just bouncing off the upper trend line, and a bearish stochastic oscillator.

That’s all for now.

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