It’s counter-trend time, more shorting opportunities

Currently experiencing an exhaustion of U.S. Dollar activity. Despite less than expected unemployment claims, Core Durable Goods Order fell by 1.2% giving concerns with the manufacturing activity within the United States. 

Currently, GBPUSD has the most significant breakout above its wedging action for the past few days.

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GBPUSD 1-Hour

The next significant supply zone sits at 1.4521, but I usually prefer to close out at around the 40% or 50% of a breakout move as I’d rather take a quick profit than attempt to ride it out to 90% to even 100% of the move as it nears exhaustion.

Similarly with AUDUSD, this counter-trend movement is more noticeable over on the 4-Hour chart.

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AUDUSD 4-Hour

Although it’s current long upper candle tail is not something I’d like to see at this stage until it hits the 0.7145~ mark. I’d be prepared to sell into this pair as well just into its daily down trend.

Gold has been picking up and sitting above the $1,100 price level amidst the global economic slowdown concerns. We still see the correlation that exists between the price of gold and the Australian Dollar with the latter posting greater volatility.

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AUDUSD & Gold Correlation

This concludes the primary charts I have been watching for this week. I will be more active on my TradingView channel.

 

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