The combination of poor retail sales and a worse than expected Trade Balance number has resulted in a unanimous sell of Aussie overnight, with big moves across all the AUD pairs.Now focus shifts to the UK, US & Canada. First up is GBP with an interest rate decision from the BOE and statement. Market not expecting any change, but statement will be interesting given recent run of poor PMI. On the GBP matrix of six pairs we monitor cable's recent reversal off the VPOC indicator for MT4 at 1.5145 has now stalled & is waiting for today's news.Of the others GBP/JPY has been in consolidation and testing the deep resistance at the 190.71 area. And of the three GBP commodity pairs, all look pretty similar and testing key resistance levels with the trend monitor below confirming the bearish picture at present.
The decision, as always, is whether to sit out the news, or if you are already in a trade whether...
The EUR/NZD has delivered some excellent trading opportunities across all the timeframes this morning to the short side, following the recent heavily bearish sentiment towards the New Zealand dollar which has seen it weaken against all the major currencies. Indeed longer term the NZD is now looking increasingly oversold, so we may see this trend reflected on the slower timeframe charts in due course.
This morning's move was signalled initially with a move below the volume point of control (VPOC) on the 30 minute chart ( the yellow line), a move that was duly supported with rising volume and confirming the bearish sentiment. In addition, the transition in the trend monitor indicator from blue to red also confirmed this reversal, coupled with a pivot high indicator prior to the move through the VPOC. Since then, momentum to the downside has increased with volumes also rising sharply and confirming the wide spread down candle as we approach a potential area of support...
