Here we are with a new Daily Analytical Report, where, as always, we bring you three interesting trading occasions. Markets are relatively calm. The biggest influences right now are technical factors. In terms of fundamentals, the calendar is empty and other aspects remain muted.
First up is the Cable - GBPUSD, where yesterday, we acknowledged a very high chance of a bullish reversal. It was signalled by three important supports crossing in one place. Those were: the lower line of the flag, the upper line of the wedge and the 38.2% Fibonacci. The rebound from this support is now 70 pips and counting.
USDCHF looks great for anti-trend traders. We’ve bounced off the strong long-term support and the price has created a double base formation along with a divergence on the MACD. All we need for a legitimate buy signal is a breakout of the local dynamic resistance, which is connecting recent lower lows.
AUDUSD is drawing a potentially a very dangerous daily candlestick pattern; a shooting star on a local resistance. The situation here is bearish and a sell signal will be created once the price breaks the recent short-term up trend line connecting lows from Friday and Monday.