Thanks for coming to my blog! Dedicated to mastering the markets, I use this space to talk through what I see in the various stock and Forex charts, how I find opportunities to make trades, and discuss the results of those trades.
Read on to see how I feel about the top-volume-receiving Forex pairs for October 24th, and where I plan on putting my money.
GBP/AUD – Neutral
Pound/Aussie has the most volume this morning, but it’s doing so within a correction. Price has largely been up for the month, but this week price is dropping pretty hard. The pullback is too deep for me to consider a “mean-reversion” trade — it’s almost deep enough to suggest a reversal. That said, a reversal pattern hasn’t happened yet, even on the 4 hour chart, so I’ll leave this alone for now. I’ll revisit tomorrow to see how it’s moving.
GBP/NZD – Long
Pound/Kiwi is interesting this morning. It’s down on the day, but not nearly as much as GBP/AUD, and looking at the daily chart, still appears to be in an uptrend. Why? Price has made higher highs and higher lows, price just got to the upper band a couple of days ago, and RSI is pushing up, near 50 and is nowhere near overbought levels. I think I’m going to take some time here and look for an entry.
I didn’t see anything tradable upon first glance. I’m going to look at other pairs for a bit and revisit in a few minutes to see if this has created a tradable pattern (on the 1h or 15m charts).
GBP/JPY – Neutral
This is interesting this morning. I could argue an uptrend starting the beginning of this month, but it’s not the strongest uptrend I’ve ever seen. Price peaked around the 12th, then moved sideways for the next week. This week, price has pushed up to those highs from the 12th, but has already pulled back, and is sitting near the highs of the sideways movement from a week ago.
I could maybe argue a double-top, which would suggest more downward pressure. I could also argue that this is the beginnings of a cup-and-handle which would suggest a strong push upward in the near future. Ultimately, this is largely sideways right now (RSI is hovering around the middle and the bands are nearly horizontal), and since I could argue a move in both directions here, I’ll just leave it alone entirely for today.
GBP/CAD – Long
Pound-Cad reminds me a bit of Pound-Kiwi. It’s been up for most of the month, save for roughly a week where price moved sideways. Over the last 8 days, price has been pushing back up and took out the highs of the sideways movement. Today, price is down a bit, but it’s back around the key area that made up the highs of the range. And, on the daily chart, RSI is moving upward and is around 50 right now.
Dropping down to lower time-frames and things don’t look as good. I could maybe argue lower highs and lower lows on the hourly chart, and I can certainly see them on the 15 min. chart. It looks like the down-move is slowing, but at the same time, price has shown signs of reversing to the downside. I won’t pull any triggers right now, but I’ll keep this on my radar as something to look for longs in.
EUR/AUD – Neutral
This is a lot like Pound-Aussie, in that it’s been in an uptrend for most of the month, but is on a strong drop today. And this drop doesn’t look like a pullback within the uptrend — it’s taken out multiple key areas and looks almost like a reversal. I’m going to leave this alone for today and see if it comes up again later in the week.
EUR/JPY – Long/Neutral
This was sideways all through September; it broke out of the lows of the range the first couple of days of October, but started steadily pushing up from there. Last week, price got back up to the highs of September’s range, and yesterday made a meaningful push through those highs. Today, price seems to be retesting those highs (on the daily chart); but dropping down to the hourly chart, the pullback looks deeper.
Price is hovering around that key area, so it could bounce from there and head to the upside, but it doesn’t look like it’s ready to do that if it’s going to. I’ll keep an eye on it, but I’m only cautiously bullish so it’s not a high priority.
EUR/NZD – Long/Neutral
Starting on the daily chart, this has been practically vertical since 10/10. Since then, there’s only one down candle on the 16th, but that was just a momentum builder as price pushed up strong again until today. This morning, price has dropped fairly significantly, and has somewhat gotten to a support area that existed back in early September.
Dropping down to the 1 hour chart, I can see another more recent key area that’s been both resistance and support going back to the 19th. Right now, price is hovering around that area. The pullback here doesn’t look too deep, either, so it could still be a viable long play. I’m cautiously bullish here as well, so I’ll keep my eye on this. But it’s a lower priority.
Thanks for reading! I see a couple pairs that I like today, so hopefully the trades work out. Stay tuned to see how they did. Let me know in the comments what you thought about today’s analysis and if you saw anything different. And, as always, don’t forget to check back frequently for more forex market analysis and trades!