Howdy Folks,

Today was a rally day among most of the daily chart up trends I’ve been watching. From reading this blog you know I prefer to buy into dips during an up trend. Since most of the pairs I watch made new highs within their up trends, I’m looking for a decent dip day.

There was one exception, USD/JPY had been on a decent rally for the last few daily bars but today it posted a sell off and lower close. I really looked for an interesting demand level to buy on but I just can’t find anything satisfying about buying USD/JPY until it gets lower. Even then the rally may just be a pull back within a larger decline so I reserve the right to be wishy-washy until a clearer signal appears.

GBP/USD posted about a 50 point bump above $1.50 today. The question is will $1.50 hold straight away headed into London or will this pair need a deeper pull back before the buyers return?

Looking over GBP/USD price action I see a couple of areas which may be interesting to watch over the next trading day. I like the $.14861 level better than the $1.4960 level but as I mentioned in the beginning of the post yesterday was an up day in an up trend and I’d prefer a deeper pull back, perhaps down to $1.4800.

GBP/USD is up against some resistance as well so watch out around $1.5068 which was the high mark before last month’s 600 plus point sell off.

AUD/USD Nears Channel Boundaries

We are awaiting the Royal Bank of Australia to release their Interest Rate decision in about two and a half hours from the time I’m writing this. The RBA is expected to leave rates unchanged at 3.00%. This pair has traded inside a channel we have monitored since I started writing this blog! It will be interesting to see if the pair is moved lower into demand levels before it can move higher after the rate statement. I personally don’t think the upper boundaries of the channel will stymie the pair but you never know.  A break higher may put $.7600 and $.7800 into play, a reversal and we look to move back to the lower boundaries of the channel over the medium term.

Best of luck,

Ryan

IMPORTANT NOTICE: These comments are for information purposes only. My opinions or other information contained in this post do not constitute investment advice. It should not be understood as a direct recommendation to buy or sell any currency contract or other investment vehicle. Forex trading involves substantial risk of loss and is not suitable for all investors.