On the D1 chart of GBP/USD the price action conforms to the bearish “Crab” pattern.
Daily Market Analysis
USD/CAD has made an immense move to the downside on Tuesday falling by about 200 pips.
Last week NZD/USD once again met resistance in the 0.6155 area. As you can see from the chart, this area stopped the pair twice before within the recent month.
It’s worth paying attention to AUD/JPY. The pair has approached the resistance line connecting April and May highs.
The way EUR/GBP bottomed around 0.8700, then rose above 0.8870 and jumped from the trendline support at 0.8910 shows that the pair possesses bullish momentum.
The New Zealand dollar seems to be tipping out against the USD. Will that be another full cascade downwards?
There’s still scope EUR/JPY to rise towards the 118.70/119.85 area, where a reversal to the downside should take place.
GBP/USD formed a “Piercing line” pattern on the D1. The pair rose to the resistance line that connects April 30 and May 8 highs.
The recent initiative for a $546-bln financial aid package in the Eurozone made the EUR/USD break local resistance. How much fuel does it have?
GBP/AUD opened the week with a gap down. Things like that have already happened before and, back then, the price continued its way down.
GBP/CHF slipped below the 50-day MA this week. The line is currently acting as resistance at 1.1905. Earlier declines below it led to bigger moves down.
USD/JPY has returned below the 50-day MA as the market’s risk aversion increased. It seems that the market has formed an interim top.