The NZD/JPY pair is trading within the cloud. A failed attempt to move higher will push the market to exit the Kumo, confirming a bearish scenario.
AUD/CHF suffered losses
SELL 0.6730; TP 0.6700; SL 0.6740
The attempt of AUD/CHF to overcome 0.6800 so far hasn’t been successful. The pair formed a “spinning top” candlestick on the D1 on Tuesday. During the Asian session on Wednesday, it has gone down to test 0.6736 (the 100-day MA; 38.2% Fibonacci of the August-November advance) as Australia released weaker-than-expected GDP growth and the overall market sentiment worsened. The slide below 0.6730 will confirm the formation of an "ascending wedge" to the downside and may be a cue for selling with a target in the 0.6695 area.
The NZD/JPY pair is now poised to exit the Kumo. If that happens, the currency pair will enter into a new bearish sentiment.
GBP/CHF formed a "bullish engulfing" candlestick on the W1. On smaller timeframes, we see a higher low that makes the price action resemble an “Inverse Head and Shoulders” pattern.
The dollar index was up late Tuesday afternoon in Asia, extending the 0.8% gain in the previous session, when COVID-19 fears and worries over the US Congress’ stimulus impasse drove a selloff across other assets.
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Gold has started a remarkable downside correction and stands on the key 23.6% retracement area after a failure to hold the 38.2% retracement area.