In today’s Price Action Setups Preview we have five pairs which may give potential signals. Let’s start with AUD/NZD, AUD/USD, EUR/JPY, GBP/AUD and XAU/USD.
After New Zealand data, the NZD weakened a lot, so we observed a strong increase on this par. Australian dollar also is in the interesting place and may strengthen in the nearest future – in this case we will see event further AUD/NZD appreciation. For now, currency pair is heading towards the support zone, which should stop the last impulse. Trend from June beginning is downward, so clear PA sell signals may be used to play short.
Aussie fell and is now hovering over next support, which is strong one. It worked few times as a resistance. Trend is still upward, so current levels give opportunity to join the momentum.
European-Japanese cross fell slightly and is reaching the support test for one more time. If it begins, it will be worth to observe price action and search for purchase signals. Breaking the level gives opportunity to open shorts in accordance to recent movements.
Pound is still strong and attacks key support on the pair with Australian dollar. Attack from July beginning was not successful, showing us a strong market supply – but there was not any clear sell signal from Price Action. If such signal occurs now, then the potential short position will have 500 pips range (targeting the lower consolidation band).
Gold broke below the key support level, leaving the consolidation range. Now, price may approach the next support zone – we have to wait for this downward move to better find what the XAU future looks like. If the rebound have to be continued, the level should be defended.