Forex Market Analysis Report - 11/5/18 – Day Trading Opportunity On The GBP/AUD

rollandthomas (74)in #forex • 5 years ago

Sentiment has improved for the Pound based on rumours of a secret Brexit deal to start the week causing Pound pairs. The spike higher was the result of a report that Prime Minister Theresa May had a 'secret' Brexit deal that could win the backing of parliament this past weekend. The reported stated that preparations for a final deal are more advanced than previously disclosed and will lead to a document of 50 pages as opposed to a vague five-page plan as many expect.

Meanwhile, the Reserve Bank of Australia (RBA) kept its cash rate unchanged at 1.5% at the conclusion of its November monetary policy meeting.The decision was widely expected by both economists and financial markets. Australian household consumption, the largest part of the economy, uncertainty. However, the Australian Dollar rose sharply against the U.S. Dollar last week on easing trade tensions and so continued US-China talks towards an agreement will be welcomed by the Aussie Dollar.

So where is the GBP/AUD pair headed, lets go to the charts.

Monthly Chart (Curve Time Frame) - monthly supply is 2.0000 and monthly demand is 1.6300.

Weekly Chart (Trend Time Frame) – the trend is up based on price making higher highs and higher lows.

Daily Chart (Entry Time Frame) – there are supply and demand zones close to current price.

NOTE: it’s interesting how price breached the lower Bollinger Band and stopped at the 200 EMA before moving higher again.

4 Hr Chart (Refinement Time Frame) – 4 hr demand is at 1.7900 and 4 hr supply is at 1.8600.

Note: the smaller the time frame the more noise, so executing the trade is should be based on price showing you it wants to move higher/lower once it enters the zone.

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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