Three bearish setups for the American dollar: GBP/USD, USD/JPY and AUD/USD [Video]

Tomasz Wisniewski Axiory Global Ltd.

You know that in our trading Sniper videos, we always show three of the best trading setups on the market. This Monday morning, gold is the hottest story and could easily be viewed as a big trading occasion as it hits new all-time highs! Well, it definitely is a top story, but not necessarily a trading occasion. There is a possibility it will go even higher, but price action traders won’t be rushing to buy gold, now that the risk-reward ratio is not at desirable levels. So even though gold is the hot topic of the day we will be analyzing the US dollar.

Let’s start with the GBPUSD, where buyers are pushing forward encouraged by two significant breakouts. The first one is the breakout of the upper line of the symmetric triangle and the second one is the breakout of the 1.277 horizontal resistance, which has been crucial for the Cable since 2019. The price closing the day above that resistance, will be an extremely strong buy signal.

The second pair is the USDJPY, which we’ve mentioned many times in the last few days. During most of July, the price was locked inside the triangle pattern, and we’ve mentioned that a breakout of the lower line of this pattern would give us a proper sell signal. The breakout did happen but the scale of the drop was surprising. Not only did it go through a significant drop but the price also broke a crucial support on the psychological 106 barrier. Sentiment here is negative.

The last pair today is the AUDUSD, where the USD is also lower. From a technical point of view, the buy signal for the Aussie comes from the bullish breakout from the wedge pattern. As long as the price stays above the upper line of this formation, sentiment is positive.

Author

Tomasz Wisniewski

Axiory Global Ltd.

Tomasz was born in Warsaw, Poland on 25th October, 1985.

GBP/USD drops below 1.3550 on geopolitical tensions, hawkish Fed bets

GBP/USD trades with mild losses below 1.3550 in the second half of the day on Tuesday. The US Dollar recovers some ground amid ongoing Middle East tensions and hawkish expectations around the Fed's interest rate outlook, weighing on the pair ahead of US data releases.

EUR/USD stays below 1.1600 ahead of US data

EUR/USD struggles to capitalize on the overnight bounce and trades below 1.1600 on Tuesday. The data from the Eurozone showed that the annual HICP inflation rose to 3.3% in August from 2.9% in July, matching the market expectation, while the core HICP inflation edged lower to 2.4% from 2.5% in this period. In the second half of the day, JOLTS Job Openings and ISM Manufacturing PMI data will be featured in the US economic calendar.

Gold extends reversal below $4,400 on hawkish Fed repricing

XAU/USD extends its reversal below $4,400, posting a nearly 7% decline from last week's highs. Precious metals struggle this week as markets reprice a Fed rate hike in September.

Crypto Today: Bitcoin, Ethereum, XRP struggle to extend gains despite ETF inflows

Bitcoin stalls while holding above $78,000 support as ETF inflows return. Ethereum takes a breather around $2,450 amid sustained institutional support. XRP remains pressured as the 200-day EMA provides immediate support.

US JOLTS Job Openings set to show a steady labor market

The US Bureau of Labor Statistics has a busy week, releasing relevant employment data. It will start on Tuesday with the publication of the July Job Openings and Labor Turnover Survey (JOLTS) at 14:00 GMT. The JOLTS report is expected to show job openings stood at 7.3 million in July.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.