Currency market: GBP/USD vs GBP/CHF and EUR/USD
(Brian Twomey – Brian’s Investment)
GB/USD opened the week at 1.1176 and GBP/CHF at 1.1232 or 56 pips. The spread from overnight trading compressed to right at 10 pips at GBP/USD 1.1273 and GBP/CHF at 1.1283.
GBP/USD Big break for the week is located at 1.1326 then 1.1400’s and GBP/CHF 1.1311. GBP/CHF at 1.1311 is far more important than GBP/USD 1.1326 as 1.1311 signifies GBP/CHF trades much higher and GBP/USD follows.
GBP/USD for today must clear 2 hurdles: 1.1260 and 1.1280. Above 1.1280 targets maximum level at 1.1336.
GBP/USD 1.1336 and 1.1326 then operate as a brick wall and short is the only trade. Below targets 1.1224, 1.1231 and 1.1238 then long again. Most vital is GBP/CHF bottom today at 1.1241.
Watch GBP/USD at the GBP/CHF bottom at 1.1241.
Note GBP/USD and GBP/CHF last on the GBP weekly trade rankings as follows: GBP/JPY, GBP/AUD, GBP/NZD, GBP/USD, GBP/CHF, GBP/CAD.
Easy trades and easy money achieve high on the list rather than struggle through the GBP/USD and GBP/CHF dilemma. Far better trades exist although GBP/USD and GBP/CHF contain both daily and weekly trades.
Shorts all week to GBP/JPY, GBP/AUD and GBP/NZD.
Highlighted GBP as a mix match of exchange rates are rare days seen in markets. Remember USD/CAD Vs EUR/JPY or USD/CAD Vs EUR/CAD. Today its CHF.
Remainder currency rankings: EUR/USD, EUR/JPY, AUD/USD, EUR/AUD, NZD/USD, USD/CAD, EUR/CAD, EUR/NZD, USD/JPY, AUD/CHF, NZD/CHF, CAD/CHF, CAD/JPY, AUD/JPY, NZD/JPY.
Best from the overall: EUR/USD, EUR/JPY, AUD/USD, EUR/AUD, NZD/USD, USD/CAD, EUR/CAD, EUR/NZD, USD/JPY, AUD/CHF.
Long 0.9665 and 0.9661 to target 0.9772. Entry lies just above 0.9586.
EUR/USD Bottom today is located at 0.9692, 0.9699 and 0.9716. Long at the lows for quick pips today but weekly trade entry won’t be seen.
The ECB at 10 am may push EUR a few pips lower however not enough for trade entry.
ECB at 10 is becoming more and more irrelevant to day trading as well as the 11 am London FIX which means currency markets are changing yet again to the next phase.
Could EUR/GBP rise towards the 0.87 level?
Looking at EURGBP’s chart, we can see that GBP is gaining ground as there are hopes for a U-turn on tax cuts from the British Government. Today, the fx rate opened down with a gap and is currently traded at around 0.8645. if the rate remains above its support level at around 0.8630-0.8640, then we should expect it to rise towards its resistance level at around 0.8680-0.87 otherwise it could test the rate of 0.8620.
EUR/AUD comes back above key, long-term support
(Tomasz Wisniewski – Axiory Global Ltd.)
Last week was decisive for the EURAUD as the price managed to create a proper, long-term trending signal. The signal is to buy and it’s based on what happened on the weekly chart.
The key level for the EURAUD in the past weeks was a resistance on 1.535 (orange). This resistance was had previously been a key support since 2018, until February of this year, and was protecting the price from bigger plunges.
On February, the price managed to break that support but the drop was not spectacular. The EURAUD almost straight away created a double-bottom formation (yellow). The double-bottom fulfilled its destiny last week, when the price climbed back above the orange resistance, which at the same time was the neckline for this pattern.
In the meantime, the price also managed to break the mid-term down trendline (green), which serves as an additional confirmation of a new bullish sentiment.
As long as the price stays above the 1.535 support, the sentiment is bullish and the next few months will most probably be positive for the EURAUD. The price dropping below would cancel the optimism but this scenario is currently less likely to happen.