Vantage FX Chart of the Day

[Vantage FX]

Chart of the Day:
Across into the realm of Commodities Trading for today’s chart of the day.

Oil Daily:

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After speaking about oil last week, one week later and price is still capped by the descending trend line. We were looking for the market to find some sellers as price approached trend line resistance and then to find an opportunity to short as it fell through the marked zone.

The setup has now reached its now or never moment. Trade the reaction or let it go with sideways chop expected if the trend line isn’t able to break or hold with a momentum type move from here.

Find more Oil Trading Technical Analysis on the Vantage FX News Centre

 

[Vantage FX]

Chart of the Day:
Heading into this afternoon’s RBA interest rate decision, we take a look at AUD/NZD in today’s chart of the day.

AUD/NZD Daily:

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While although still in shorter term range, AUD/NZD is stepping up between major support/resistance levels nicely. A great example of how tight your stops can be placed if you get conformation of a bounce off a major support/resistance level.

Price has now come back to test one of these support/resistance levels that has been an area of interest in the past and gives a nice area to manage your risk around.

Do you see opportunity trading AUD/NZD heading into the RBA decision?

 

[Vantage FX]

Chart of the Day:
The major daily bearish trend line on oil has given us plenty to talk about recently, with price again testing the level overnight before breaking out to the upside.

Oil Daily:

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US Crude Oil Traded at its highest price in over 3 months after reports of tighter supply for 2016 and of course a broad weakening in the USD.

With price largely range-bound for a couple of months now, if price can manage to make new highs and kick away then this could be a nice trade for the breakout traders.

Do you see opportunity in commodities trading?

 

[Vantage FX]

Chart of the Day:
Coming off the back of yesterday’s Bank of Japan monetary policy statement and into tonight’s Bank of England bank rate decision, we really had nowhere else to look for today’s chart of the day than ‘Geppy’ – GBP/JPY.

GBP/JPY Weekly:

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I’ve included the weekly chart here for longer term context around the trend lines that are now in play.

Remember our trend line subjectivity discussion? Well here we are again, with 2 variants of the weekly trend line depending on how you look at it. I’ve included both, with the solid line being the 1 that is currently in play.

GBP/JPY Daily:

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Zooming into the daily, I’ve highlighted a possible level of interest that price is approaching. Here we have a confluence of both re-tested trend line resistance as well as a horizontal zone that has seen plenty of reaction in the past.

This is the type of zone that is often good for a short term bounce off of, but rarely do they hold when faced with a momentum move into them like we are seeing here with the Pound strength.

If you like this setup, just make sure you are banking your pips and not standing on the tracks waiting to get hit by the train that you’re stepping in front of.

Find more GBP/JPY technical analysis in the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
We’ve looked at the EUR/GBP Channel in a technical analysis post a few weeks ago and we re-visit the pair in today’s chart of the day.

EUR/GBP Daily:

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As you can see, the setup from weeks ago is still basically in tact. We are still at the top of the daily range and the path of least resistance still looks to the downside.

Pound strength in the fallout after the most recent BoE guidance should dictate the trade from here.

Find more EUR/GBP Technical Analysis on the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
EUR/JPY is a Forex cross that I haven’t had on my watch list for a while now, but it’s time to bring it back for a look.

EUR/JPY Daily:

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The daily chart has coiled into a triangle, with the most recent touch of trend line resistance coinciding with a horizontal SR zone that has been tested all over the place in the past.

These are the sorts of setups that you have to be careful fading because zooming into the hourly chart, you can see that buyers had huge momentum behind them to end the week. Now price has come into a higher time frame sell zone, I’ll be keeping an eye on the lower time frame charts for signs of momentum failing into any sort of short term confluence of resistance, but not going to pull the trigger at first sight.

Find more EUR/JPY Technical Analysis on the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
With Vantage FX changing from Futures based Indices trading to the more streamlined Cash Indices Trading markets, we today take a look at the continuing narrative developing in the German DAX.

DAX30 Daily:

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With our last Technical Analysis post taking a look at DAX sitting on major trend line support following the Volkswagen debacle, price has now bounced up again to re-test the underside of the broken short term channel/flag.

If you look at the hourly chart, you could argue that this is the 6th touch of the trend line. With the vertical move up to the level and major trend line support holding, I am now watching for price to reactivate the line as support again and continue its move higher.

Read more DAX technical analysis on the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
The AUD/NZD level that we highlighted last week has been chopped through a bit and is looking like its going to break.

AUD/NZD Daily:

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With fresh talk of an Aussie rate cut hammering the currency and NZD/USD sitting at short term trend line resistance, we could get a nice pop to the downside off this level.

Do you see opportunity trading the Aussie and Kiwi?

 

[Vantage FX]

Chart of the Day:
Elsewhere, the UK unemployment rate hit its lowest level for more than 5 years last night, beating expectation and giving the Pound a kick.

“GBP Unemployment Rate (5.4% v 5.5% expected)”

The 5.4% print was the lowest jobless rate seen since as far back as 2008. Being a pre-GFC reading, the fact that unemployment is now again below that level is hugely significant in terms of recovery in the eyes of the Bank of England who are still looking at their next interest rate move being up.

GBP/USD Daily:

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First of all taking a look at the Cable daily chart, we can see that price has consolidated into a sideways range after breaking out of its bearish trend back in May. I really like this chart because of how clearly defined the range is, as well as the levels that price is using to step between.

GBP/USD 4 Hourly:

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Now zooming into the 4 hourly chart, we most obviously find price sitting at short term trend line resistance, but also coming into a previously tested horizontal support/resistance zone. Just remember the path of least resistance.

Do you see opportunity in this Cable technical analysis?

 

[Vantage FX]

Chart of the Day:
After printing 9 days without a single bearish candle and going on the pair’s longest bullish streak in 4 years, it all seems to have come undone for USD/CAD.

USD/CAD Daily:

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Price on the Loonie has now pulled back to re-test previous resistance now as possible support. It’s a very clean level and if momentum stalls, could offer a chance to fade against it.

Do you see opportunity trading the Canadian Dollar?