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GBPUSD 15 MINUTE CHART – TRADING LESSON
You have seen me talk about the influence of cross on spot trading and this is how I look at it using EURGBP to illustrate:.
– When you see a straight line move down as in this chart (I look at the 15 min chart), it suggests there is a real money flow (order) driving, in this case, EURGBP lower.
– So you know GBPUSD is being bought and EURUSD is being sold.
= During this straight-line move, given the current trend, GBPUSD will be supported.
– Once EURGBP finds support, either GBPUSD will lose its strong bid or EURUSD will play catch-up.
– In this case, GBPUSD has lost its bid and slipped once the EURGBP bounced off its low.
If you ever played the game “Hot Potato” you can go with the flow until the music stops (i.e. order is filled)
Given how EURGBP is influencing EURUSD and GBPUSD, it seems like a good time to revisit this insightful article.
How You Can Use Currency Crosses to Trade Spot Forex
EURGBP 4 HOUR CHART – BACK BELOW .8600
If you trade EURIUSD and/or GBPUSD you need to keep an eye on EURGBP, which is trading lower today.
This, in turn, is helping to give GBPUSD a bid and so far keeping a lid on EURUSD.
Given the trends, the market is having more trouble absorbing the GBPUSD buy side.
EURUSD DAILY CHART – WATCHING A KEY TRENDLINE
EURUSD: technicals pointing up but so far just nicking its key daily trendline at 1.0831 without a clean break as it lags as it trades softer on various crosses (e.g. EURJPY, EURGBP). A firm break would expose 1.0884 as the next target.
Time now to roll the dice as US data is the next key focus.
USDX DAILY CHART – USD UNDER ATTACK
I am taking a look at a USDX chart as the USD is down vs. all major currencies as the JPY has joined in as it follows the drop in US bond yields.
As I have noted, with the EURO 57.6% of the index, I look at USDX as a proxy for the currency.
To confirm what I am seeing in the EURUSD, a break of 104.61 would be needed.
USDJPY 4 HOUR CHART – FOLLOWING US YIELDS LOWER
USDJPY correlating with a further fall in US yields to break the first support of 145.97-155.49-155.14 posted late yesterday
From a technical perspective, the pause below the 61.8% level at 156.98 makes this rebound from 151.85 a retracement that now has a third lower high at 156.74.
On the downside, 155.49 is a key support blocking 155.00-14
US data later on is clearly the next focus.
This is the key data day everyone has been focused on, US CPI and Retail Sales. Be prepared with this
A Detailed Preview….
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