Commentary on the GBP/AUD

Forexmentor.com Forex Trading Price Action

GBP/AUD: Weekly Chart (Courtesy Richard and Patricia Gaulli, long-standing members of www.forexmentor.com) – “The EMAs are now stacked for short, after experiencing a Death Cross of the 50 and 100. Both BBs are now headed south, and price has been contained inside of the lower band. This past week’s candle closed as a classic bullish spinning top. MACD is very o/s and flat, with the Histogram losing strength. STO is on its way up, from being very o/s, having crossed its trigger. %R is going extremely o/s once again.”

Price action on the daily chart for this pair is clearly trending down, as evidenced by the 30 EMA. The 200 EMA is also trending down on the hourly, 15 and five minute charts. There is no doubt where this pair is headed.

Members of Forexmentor.com are fortunate to have Richard and Patricia submit their weekly analysis of the forex pairs, so that members can pick and choose which pair(s) they wish to trade. The analysis is impeccable, and leaves no doubt as to where price action is headed in each case.

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Commentary on the USD/CAD

Forexmentor.com Forex Trading Price Action

Well, the low that was established 22 candles ago on the daily chart for the USD/CAD pair was taken out one candle ago on the same chart – quite disconcerting, were it not for the fact that it was taken out by a rather long price rejection candle, called a hammer. So, that’s both bad news and good news. Further, the hammer’s lower shadow (or wick) exceeded the lower Bollinger band. When you see that happen, you can reasonably expect price action to head for the other band (upper, in this case).

Also, consider the fact that MACD is still above its trigger line, and its trend is still up – headed towards the waterline. What does this all mean? Well, I hope it means that everything is okay. Just kidding folks. It looks like the bottom is holding, but we’re not out of the woods yet. I need to see some strength from here before I’ll relax. The fundamentals would seem to support that the pair should advance from here. What is causing uncertainty in this market is the prospect of tightening on the part of the BoC, but I believe that such a possibility has already been factored into price action. Stay tuned at forexmentor.com for further commentary on this pair.

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