Today we’ll show you some Forex trading ideas. The Brexit deal is said to be 95% done, according to EU officsials, which removes much of the uncertainty about the pound sterling. We take a closer look at the GBPJPY pair in this critical moment.
According to Goldman Sachs analysts, the AUD may “outperform in 2021” as the Australian and Canadian economies are set to be in better condition than other countries.
SimpleFX AUDUSD Chart Analysis: November 24, 2020
The AUDUSD pair forms a bullish trend that moves inside a large green channel.
Over the past month, the price has risen from the lower line to the upper line of the green channel. The bulls failed to break through the upper green line, and the market started moving in the opposite direction.
Since the price is currently moving sideways, the bulls still have a chance to take over the situation. If they manage to reach the resistance level of 0.733, which is on the upper yellow line, then they will have access to the upper green wall and the next resistance level of 0.740.
In an alternative scenario, we expect prices to decline.
The first target is the support level of 0.721, located on the lower line of the yellow channel. If the specified mark is broken, the decline will continue to a lower support level, which is on the lower wall of the green channel.
SimpleFX GBPJPY Chart Analysis: November 24, 2020
The current GBPJPY structure shows an uptrend that moves inside the green channel.
After the last rebound from the upper green line, the market went down, but the bears could not bring the price to the lower wall of the green channel. We can see that in the last section of the chart, the market turned around and began to move in an upward direction. This section describes a small yellow channel.
There are two possible scenarios.
In the first case, the upward movement of the currency pair will continue further, along the yellow channel in the direction of the resistance level of 141.71, which is on the upper green wall.
In the second case, we could expect a price reduction. If the market touches the lower yellow line and breaks the support level of 138.99, our assumption will be confirmed, and we will be able to see GBPJPY decline to a lower level, which is on the support line of the green channel.