In the dynamic world of foreign exchange trading, trends can change rapidly. As of the latest reports and market sentiment, traders are displaying a notable bullish bias towards the AUD and the NZD. While simultaneously adopting a bearish stance on the GBPJPY currency pair. Let's delve into the factors driving these sentiments and what they mean for forex traders.

The AUDUSD Performance 

Their short-term bullish wave is on the cards. AUDUSD has rallied up +70 pips from the lows of the descending structure on the Daily timeframe. This has caused the market to create a double bottom around 0.63789 and break above the previous structure level and trendline. This price action suggests that the bears are starting to secure profits and exit the market which could start a short-term bullish wave.

According to this price action, traders anticipate the market to push up to the previous resistance zone around 0.65900. Furthermore, they are waiting for a break and close above the resistance zone around 0.64864 before looking for trading opportunities.

The GBPJPY Performance 

GBPJPY is trading below the resistance zone around 184.852.

This pair has created a double top around 186.475 and dropped and closed below the previous structure level around 184.852 to create a lower low. The market further tried to continue trading to the upside however it created a lower high around 186.000 and ultimately failed to break above the the resistance zone around 184.852. 

This price action indicates that the market has lost momentum to the upside and could see a pushback to the previous support zone around 183.119. As such, traders are waiting for the market to test the resistance zone again before looking for trading opportunities.

The NZDUSD Performance 

NZDUSD's short-term bullish wave is on the cards.

NZDUSD, similar to AUDUSD, is rejecting the lows of the bigger descending structure. This is where the bears will start securing profits. According to this price action, traders are closely monitoring price action on the lower timeframes and waiting for a break and close above the resistance zone around 0.59890 before looking for bullish trading opportunities to the next resistance zone around 0.60861.

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Final Thoughts on Today’s Analysis 

In the ever-evolving forex market, traders' sentiments are often influenced by a complex interplay of economic, political, and technical factors. Currently, a bullish outlook prevails for the AUD and NZD due to strong economic performance and favourable central bank policies. 

Conversely, uncertainty surrounding Brexit, the safe-haven appeal of the JPY, and technical factors are driving a bearish sentiment towards the GBPJPY currency pair. Subscribe to our YouTube channel today to learn more about our analysis.