Lots of data this week for GBP. Watch out for GBP figures and interest rate decision on Thursday starting from 8.30am GMT UK time with Halifax House Prices.
This data packed day could provide the direction for the rest of the month by the time of the US open.
USD & CAD are suffering bad data outputs and lack of demand for oil.
We could see this market testing the bottom of the short term range around the 1.315 zone looking for direction.
Further drop in manufacturing data could see further downside.
CADCHF could see a retracement down to the 0.7444 zone area after double topping on D1 before resuming a bullish stance.
US stock inventories haven't helped the bulls !
Watch the PA if the 0.74 lows get taken out
HAVE WE REACHED THE SUPPORT AREA FOR A SHORT TERM PULL BACK TO THE 0.905 ZONE ?
POLITICAL ACTIVITIES AND BOE HAWK TURNING DOVISH COULD PULL THE EURO UP BUT WE STILL SEE THIS MARKET BEARISH ON THE MEDIUM TERM TO THE BOTTOM OF THE RANGE AROUND 0.85 ZONE
We are still short this market whilst JPY is still showing strength and AUD at the opposite extreme. However, watch this market in the next few weeks for signs of reversal when the 71.00 zone has been reached.
A big change in risk would be needed to move this market beforehand.
RSI AND RESISTANCE LEVEL SHOWING POTENTIAL FOR GBP TO REVERSE TO THE BASE OF THE CHANNEL AROUND 1.82 ZONE.
WITH ALL THE POLITICS SWAYING THE PRICE ACTION IN GBP IT IS MOST LIKELY GOING TO BE A STEADY DECLINE OVER THE NEXT 7-8 WEEKS IN LINE WITH PREVIOUS WEEKLY CYCLES.
AudJpy is in a weekly and daily downtrend. Price has pulled back to the previous structure lows of June 2019 and could possibly continue its bearish journey.
If todays candle closes as a bearish pin bar it is quite likely to to test the 72.52 area, previous structure highs.