Business Trading idea of ​​the day: GBP / USD and...

Trading idea of ​​the day: GBP / USD and AUD / USD

KEY POINTS:

  • Indecision continues to reign in the markets after a rebound in the cases of Covid-19
  • GBP / USD manages to regain support from buyers
  • AUD / USD caught between two moving average lines

ASIAN SESSION REVIEW

Overnight there was a lack of overall direction despite sharp declines in the markets for United States in the session of Yesterday. Fears about the possibility of a second wave of COVID-19 could derail the recent gains, with Dr. Fauci warning that easing of containment measures it could make the deaths skyrocket once again. Those plans to ease the restriction appear to be very different by state, as the three-month extension of the confinement in California contrasts with the announcement that Georgia will reopen bars and restaurants on May 31. Meanwhile, sentiment was shaken after a Republican senator proposed legislation that would give Trump the possibility to sanction China if it did not take full responsibility for the events that led to the current global pandemic

GBP / USD ANALYSIS

GBP / USD
MIXED

Data provided by



of customers are long.



of customers are in short.

Variation in

Long

Short

Open interest

Daily0%2%one%
Weekly40%3%24%

Data released this morning shows that the UK’s GDP contracted by 2% in the first quarter of the year, a relatively positive figure given that the markets expected a 2.5% contraction. GDP for the month of March was -5.8%, again above expectations of -7.2%. Given this, the pound has recovered a little support from buyers, since the British economy has remained quite resilient compared to other countries in Europe. The Bank of England predicts that the second quarter will be the worst, with a contraction of 25%, which will lead to a GDP by 2020 of -14%.

It may interest you – GBP / USD: double top pattern confirms bearish pressure

Figure 1: GBP / USD4 hours (March 25May 13 2020)

Yesterday I was commenting on how the 4-hour GBP / USD chart was showing a double top pattern, which was alluding to downward pressure. If we revisit the chart this morning, we can see how that selling pressure continued in yesterday’s session, but was not able to bring the pair below the low point after the first ceiling, located at 1.2245. The fact that quite negative data was expected but sellers have not been able to get below the previous low point shows the resilience of the pound sterling and seems to indicate a bullish rebound.

However, GBP / USD has also not been able to overcome 1.2300 despite less negative than expected data, indicating a key point of resistance in the short term. It is likely that the pair will remain trading in the range between 1.2245 and 1.2300 in today’s session, due to the lack of concrete data. But if we manage to see a push above 1.2300, the next point to consider is 1.2373, where the maximum of yesterday’s session is located and a confluence of downward pressure. If invalidated, a push above 1.24 could lead GBP / USD to the next key resistance point, located at 1.2480.

AUD / USD ANALYSIS

AUD / USD
BULLISH

Data provided by



of customers are long.



of customers are in short.

Variation in

Long

Short

Open interest

Daily-7%-2%-4%
Weekly-6%5%0%

Chart 2: AUD/ USD 1 hour (April 22 – May 13 2020)

Trading idea of ​​the day: GBP / USD and AUD / USD

On the 1-hour chart we had identified a double bottom pattern, which in this case had indeed consolidated, but then we saw a bearish correction, bringing AUD / USD below 0.65. This morning we have seen the pair fall below the 200 hourly moving averages (dark green) line but has found a key support at 0.6450, and is now above it again. In turn, the 100-hour line (red) has been placed at the confluence of the 0.65 line, which has left AUD / USD trapped between the two lines (100- and 200-SMA).

The pair is likely to remain trapped in that range, but a push above 0.65 could see an attempt to break out of yesterday’s session high at 0.6535, then continue to the upper limit of the descending triangle at 0.6562, where it is located. strong bearish pressure and unlikely to be invalidated with the lack of a key catalyst.

If, on the other hand, AUD / USD falls below 0.6461 (200-SMA), support at 0.6450 would come into play, followed by the lower limit of the ascending triangle at 0.6425, which if invalidated would see a relapse towards key support at 0.6362. .

Starts at:

Live:

May 18

(07:05 GMT)

Discover here the most important events of the week

The most important events for the markets

Register for the webinar

Join

The webinar has ended

TRAINING TOOLS FOR TRADERS

— Written by Daniela Sabin Hathorn, Market Analysts

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest news

Coronavirus – Restrictions for the nightlife on the Greek islands

After new records of contamination, Greece decreed Monday the night closure of bars and restaurants in some of its...

Demonstration requested for Bas shot dead at De Nieuwe Meer

Concerned Amsterdammers have requested a demonstration at the municipality of Amsterdam for the shot Bas van Wijk (24). ...

Urgent .. the death of youtuber Mustafa Hafnawi after a health crisis

Young rapper and artist, Ahmed El Shobokshi, announced the death of YouTuber Mustafa Hafnawi, after a recent health crisis...

For all faculties .. vacancies in the National Bank of Greece

The National Bank of Greece announced vacancies in the bank’s branches operating in Egypt, through its official website, to...

Korina Rivadeneira and Mario Hart love this dance with their baby

Korina Rivadeneira and Mario Hart They showed once again the good rhythm they have, and Lara, who...

You might also likeRELATED
Recommended to you