Markets are characterized by EURO weakness following the Italian elections, while there is a tendency for the JPY to rise. GBP has started to fall again while the USD dollar seem. Avoid selling oversold pairs at the moment as there is a lot of uncertainty in the market.
GBPUSD (4-HOUR) Sell
-Pair is falling a clear down trend following also the Moodys downgrade
– Trend and Wave indicators are pointing down
-Extreme indicators are pointing overbought
– Pair has completed an upward correction and should be falling now. Shown by the 2 consecutive down candles. Be careful with the up candle that has formed now.
EURAUD (4-HOUR) Sell
The trade was suggested yesterday and earned 150 pips. Here is a chance to jump back to this trade as it has retraced significantly.
-Pair is following a down trend line
– Trend indicators are pointing down
– It has corrected significantly since its big down move yesterday.
Note: Wave indicators are still pointing down and not yet overbought which may mean further correction may occur.
Read about the Trend/Wave/Extreme system here.