The movements of the last two days continue today. USD is getting stronger and it doesn’t look like this movement is going to end today. On a few instruments, we can see clear targets for corrections and there are very high chances that we will get there soon.
EUR/USD has been making lower highs and lower lows for the last 4 trading days. The potential target here is around 40 pips lower, where we have an upwards trend line, correction equality pattern and horizontal support. The area around 1.1265 looks delicious for potential buyers; we just have to wait for some price action to back up the theory.
AUD/USD is still under the influence of the RBA. Yesterday, we corrected this bearish movement a little bit but at the beginning of the European session, the bullish movement stopped. By the way, that was a beautiful display of the principle of price action that a broken support becomes a resistance. There’s only one direction for the short term; South.
GBP/USD is aiming for the upper line of the wedge to test it as a support. In the same place, we have a 38.2% Fibonacci retracement of the latest upswing. This area looks strong, and we could have a similar situation here as we are seeing on the EUR/USD.