Hello Forex traders,
Whereas yesterday’s article discussed and reviewed the potential Great British Pound strength, today our focus is on the Aussie and Yen.
Could these currencies continue with their strong trends or will there be more consolidations? What levels are key? Find out our view here below! But as always your analysis is greatly appreciated so please provide your feedback in the comments section.
The AUDUSD has just hit the major daily / weekly 38.2% Fibonacci retracement level, which has been often mentioned in the trading room as a strong resistance level. Price has already fallen 50 pips. How far can it continue?
Various time frames seem to have a clash of trends. Whereas the higher time frames are in a downtrend, the 1 hour chart has clear upwards momentum supporting the Aussie. The question is: will the uptrend maintain its momentum OR will the resistance crack and could there be a turnaround?
For the upside continuation and continuation of higher time frame retracement: a break of the top and the 38.2% Fibonacci level is needed before upside continuation is likely.
For the downside reversal back into the down trend of higher time frames: a break of the first support trend line is needed for an early indication of a downside break. For a full confirmation price needs to break the other support levels (green and magenta).
YEN REBOUND ON 1 HR
Recent bullish price action the last few hours could signal the continuation of the bigger Yen weakness trend. Although too early to tell whether the USDJPY uptrend is in full swing, there are first signals of the switch:
1) Price bounced at the daily 50% Fibonacci retracement level (daily chart)
2) After the 50% bounce, the subsequent pullback did not break the bottom and respected plus bounced at the 61.8% Fibonacci (1 hour chart)
3) Price has resistance lines (green and blue)
The Yen’s widen open space factor is very interesting. Due the big uptrend on the daily chart there could be lots of space for uptrend continuation. But the bigger spaces are in fact higher above.
Here are all of the resistance levels:
1) First price needs to break through the current daily top (orange)
2) Then price has some space up to the next resistance trend line (purple) and previous high (red dotted)
3) A break of that could mean a higher chance of one more push up to the test the current top (red solid)
4) A key resistance level is a monthly trend line (light blue)
A break of the above resistance increases the likelihood of an uptrend continuation towards the -27.2% and -61.8% Fibonacci retracement targets.
GBPJPY TRADE WINS 90/120 PIPS
With potential GBP strength and JPY weakness, the GBJPY could be an interesting currency pair.
Yesterday’s long trade setup for the GBJPY, which was mentioned in the Double Trend Trap summary video, was good for +90 and +120 pips, versus a 40 pip risk. Make sure to check out our trading room and DTT strategy.
Did you take the trade yourself? If yes, please let us know down below or below the Double Trend Trap video of 17th of Feb.
As always thanks and Good Trading!
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