Trade view /
07 September 2017 at 7:17 GMT
The USD looks like it has completed its mild downward correction. Our bias turns bullish once more...
Daily: Completes a bearish five-wave count (Elliott Wave) with a Doji style candle at the base close to the 261.8% extension level of 91.73 (from 103.85-99.22).
Intraday (one-hour): Posted a Bullish Outside Bar at the 76.3% pullback level of 91.97. We now look for the AB-CD corrective formation to be complete.
Intraday (15 minutes): Looks to be forming a bullish reverse head-and-shoulders pattern. We look to buy USD (through the majors) close to 92.06 (right shoulder) or a break of 92.29 (neckline).
Summary: Getting long of USD.
Weekly: We have a mixed picture as far as the Elliott Wave landscape is concerned. We could have a fifth wave compete at 1.1500 with the move higher the first corrective leg or this last move higher could be the fourth wave correction. Whatever the case, we look for the bias to turn negative after rejecting the Ichimoku Cloud top.
Daily: A corrective AB=CD formation was completed at 1.3252. The pairs posted a Bearish Outside Bar on the 3rd August after a high trade of 1.3268.
Intraday (four-hours): We broke the wedge to the upside and the target (of 1.3030) was reached. Continued upward pressure yesterday resulted in the pair touching the 61.8% pullback level of 1.3078. Bespoke resistance is seen at 1.3075. The one-hour chart highlights an Evening Doji Star formation, a pattern often seen at the top of a trend.
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Source: Saxo Bank
Entry: selling GBPUSD at the market and 1.3070.
Target: 1.2962 and 1.2928.
Time horizon: short- to medium-term.
— Edited by Michael McKenna
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