- Daily and 1H: The daily chart shows a continuation pattern right at the channel resistance. This type of market action means that the market actually is NOT respecting the channel.
- Fibonacci expansion levels and retracement levels have confluence right above the 1.30 area.
- That is the target for the current rally. We may be a bit overbought in the near-term, but I doubt there will be strong retracements. I am now switching from AB=CD pattern to C=150%A type, so again the target is near 1.30.
- 4H: The 4H charts of GBP/USD and USD/JPY, we see that the greenback is weak across the board today. It lost against the CHF and commodity currencies as well.
- This shows confirmation of greenback weakness so we can expect this to be an intermediate term move. This may be the trend for the rest of Q3.
Fan Yang Currency Analyst Commodity Trading Advisor
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.