The risk-on setting is turned up to the max. Stocks are climbing higher, safe haven assets are trading lower and EM currencies are gaining strength. In this environment, we have three trading occasions for you.
First one is the GBPUSD, where sentiment is very positive and we should soon see an attack on the highs from May. The positive sentiment is based on the fact that we have an up trend and just recently created a flag, which stopped on the 50% Fibo, used that as a support, and ended with the price surging 170 pips... and still counting.
The next one is the USDCHF, where we’re awaiting a breakout. It should happen soon. In fact, it could already be happening. The price has created a double base formation and is currently trying to break the mid-term resistance. If they manage to do that, a buy signal will be created.
Last up is the AUDUSD, where the price has made new yearly highs. That gives an optimistic signal to all traders. Even if, in the next few days, we see a correction (which would be totally normal), the long-term sentiment remains positive.