28th – 1st August Forex Price Action

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After waiting for weeks which turned into months, finally some volatility is back in the forex market. This week, I am going to focus on 3 pairs namely EURGBP, AUDUSD and USDX.

EURGBP

eurgbpdaily

Last week, traders were waiting for the BOE meeting minutes to see if any of the 9 member committee voted for the rates to be raised. Once they saw that all 9 voted for interest rates to remain signaling rates are likely to remain at 0.5% for some time, trader sold the Pound immediately. For this reason, I do  not see that Pound would gain more strength in the short term against the Euro until wage growth catches up. The EURGBP is in a prolong downtrend and I think we should see some mini reversal.

Trade Idea:Buy EURGBP at 0.7913 or 0.7892. 1st target at 0.7936 followed by 0.7980 and 0.8103. Stop loss is a close below 0.7873

 

AUDUSD

audusddaily

Once again 0.9450 proved to be a very stubborn resistance for the AUDUSD to break through. I shorted the AUDUSD once again at 0.9440. I did not wait for any price confirmation. This trade was just based upon long term fundamentals as explained in my previous post.

Trade Idea: Sell AUDUSD. First target at 0.9368, followed by 0.9268. Stop loss is a close above 0.9471

 

USDX

#usdxdaily

The dollar index seems to have reached the resistance of 81.09. I expect some price resistance at this area.However this does not change my view about the a bullish dollar.

Trade idea. Buy at establish support levels