Trend Line Analysis: August 4th, 2015
Littlefish FX | Aug 04, 2015 12:34AM ET
We have focus on few majors crosses for the day, with AUD and GBP likely to make noise for heavy sets of data in store for the AUD in Asia and later GBP will react to it’s Construction PMI.
We have two setups on GBP crosses and one on the AUD, so while we come close their news events caution is required.
h3 GBP/JPY/h3No change from yesterday's layout, only the support has dropped in a tart lower. 192.7X is support we like to see a test and a hold to go long.
No change from yesterday's layout. Only the support has dropped in a tart lower. 491X support we like to see a test and a hold to go long.
Caution is required for today we have some big news event for Australian Dollar with Retail Sales and Trade Balance to be followed by Cash Rate and RBA statement. AUD is likely to stay heavy with while mostly it is expected RBA won’ t be cutting rates at present, but the RBA statement will be more important to see if the statement is dovish and whether further rate cuts to seen.
There is a particular swing setup in place where both buys and shorts can be initiated.
There are various ways to play this setup. Going with the view that the pair can test T3 or 2.395X which comes in as a decent looking spot to try shorts for an initial move back to 2.385X with potential run lower to 2.35XX. This for now is the preferred scenario.
Alternatively, we can use a move lower to 2.3515-20 to enter longs for the desire target to test the black trend line to the top. If aggressive, we can even look to play the break of T4 or 2.384X for a possible 100 pips move to the 2.395X target and reversing the course from there.
GBP will see Construction PMI data and a better than expected numbers can push the pair higher and vice versa.
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