Markets

FX Price Action Setups (GBP, USD, JPY) 5.11.2017

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Talking Points

- In this webinar, we used price action to look for trading setups for the next couple of weeks given the past couple of weeks of news and drivers.

- The first market we looked at was GBP/USD after this morning's Super Thursday batch of announcements from the Bank of England . We looked at a top-side continuation play using prior levels of support after a dovish BoE elicited a mere higher-low support-check in GBP/USD. For more information behind the techs on this setup, please refer to our article published earlier today entitled, Cable Testing Support post-BoE .

- We then moved over to GBP/JPY, which still looks to be considerably overbought. We looked at potential bullish re-entry levels at 145.63, 144.55, and 143.54 with 142.45 being an optional 'S4' zone of support.

- We then looked at EUR/USD, which is currently finding support around the 1.0850 level that's held the lows for the better part of the past week. Just below is perhaps a bigger, more pertinent level at 1.0820, and this is where I want to watch for support-based entries.

- We then moved over to EUR/AUD, which was my 'trade of the year' published in our trading guides. I walked through an updated setup in this webinar, but for a more thorough walk-through behind the logic of that setup, please check out our trading guides at this link .

- We then moved over to USD/CHF . I had set up an analyst pick on USD/CHF just a couple of weeks ago , and this week we finally saw the top-side move begin to play out. I looked at using 1.0041 and parity as bullish re-entry levels. For a more thorough walk-through, please check out our technical article on Swissy published yesterday entitled, USD/CHF Technical Analysis: The Bulls Have It .

- We then moved over to USD/JPY. I like the top-side of the pair, but I want to see a deeper retracement before adding long exposure. The area around 113.00 seems like a sweet spot to look for such support; but I'd be open to taking 113.61 as well if buyer response is robust-enough.

- We then looked at EUR/JPY. The level to watch here is around 121.95. We'd published an updated technical article on this pair yesterday entitled, Bullish, but Toppy .

- We closed by looking at Gold prices. Gold has been on a pronounced down-trends for the better part of the past month. That downtrend is looking to be oversold at this point, and while $1,225 resistance has capped gains thus far, a deeper retracement into the zone between $1,227 and $1,235 could be more operable for longer-term, short-side swings. For more information on this setup, please check out our Gold article published earlier today entitled, Gold Prices Are Testing Near-Term Resistance .

--- Written by James Stanley , Strategist for DailyFX.com

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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