Forex Trade Signals and Setups Jan 11th
GBPUSD – Last Line in the Sand
After holding in a channel for the last month and a half, the cable has broken the December lows of last year and is in danger of exiting out of the channel. The last candle was strongly bearish closing off the lows suggesting the bears did not take profit into the close which means they could be intending on gunning for the next key level – 1.5271.
This was the yearly low for the pair and produced a strong rejection the last time around (850pips) so should the pair break this level, we anticipate stops will get tripped just below and technical models will enter new shorts. Thus, look for price action triggers around this level as it will attract intraday bulls and bears alike offering opportunity to both sides.
AUDUSD – Trying to Build
After forming a pinbar signal on the 4hr time frame off the 20ema, the pair has now climbed two days in a row. However, today’s climb was a little less tentative suggesting bulls may be feeling cautious in front of the key resistance ahead just shy of 1.0400. But the price action keeps building and the model suggests we should get the resolution soon as wedges like this rarely go to full termination.
Short term traders can look for a sell just shy of 1.0400 with tight stops above while bulls can buy on a dip to the 20ema or wait for a price action breakout-retest setup.
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