The Australian dollar crashed along with commodities yesterday, which created a great opportunity on AUDUSD. The British pound has also dropped against the yen. In the second part of our analysis, we take a closer look at the GBPJPY pair. Enjoy!
The AUDUSD currency pair forms a downtrend that moves within two channels – yellow and green.
Recently, the price touched the upper green line near the intersection with the upper yellow wall. After that, we saw the market decline in the direction of the lower yellow wall.
It is assumed that the market will continue to decline. If the support level of 0.750 is broken, which is on the lower line of the green channel, market participants could expect a continuation of the depreciation of AUDUSD to the lower yellow line and the support level of 0.732.
Alternatively, the price may start to rise. The first target is on the resistance line of the yellow channel, that is, we are talking about the price level of 0.772. If the bulls can break through this level, then they will open the way to the next resistance level of 0.782, which is on the upper green line.
The formation of the GBPJPY currency pair hints at the development of a major uptrend moving within the yellow channel.
After the rebound from the upper yellow line, the market began to move down. This section describes the descending channel of the green color. We can see that the price has been trying to break through the upper green wall for a long time, but recently rebounded sharply from it and went down.
It is possible that the market decline will continue. At the break of the support level of 151.64, we expect a decline to a deeper support level of 150.17, which is on the lower yellow line.
However, it is possible that the bulls did not give up so quickly, and we will see a repeated upward movement of the price to the upper green line. And if the resistance level of 155.20 breaks, the price can rise to the upper yellow wall and the resistance level of 156.67.