Authored by TD Markets
In the ever-evolving world of forex trading, keen-eyed traders are constantly analysing the market for potential trends and retracements to make informed decisions. Currently, the EURUSD currency pair is showing signs of retracement, while market participants anticipate short-term weakness in the Pound. In this article, we will delve into the factors driving these developments and how traders can navigate the volatile waters of the forex market.
The EURUSD Performance
(UPDATE) - EURUSD retracing back to structure.
EURUSD is trading within a bullish market. Recently the market created a new higher high and is now retracing. According to this structure and price action, traders are bullish and anticipate the market to retrace 50% of the initial bullish impulse wave and test the previous structure before looking for trend continuation trading opportunities.
The GBPCHF Performance
A rally in a bear market. GBPCHF broke below the ascending channel after rejecting the top of the daily timeframe structure. This caused the market to break below previous support zones and create a series of lower lows and lower highs. According to this price action, traders are now bearish and are waiting for a corrective pattern to form before looking for bearish trend continuation trading opportunities.
The GBPJPY Performance
GBPJPY is trading closer to the top of the structure.
GBPJPY is trading within a pattern. Recently the market pushed up from the lows of the pattern and broke above the inner structure. It is trading closer to the previous 2 structure high points on the pattern which makes it the top of the structure. According to this price action and structure, traders anticipate the market to create the 3rd high and reject. The top of the pattern for a short-term drop back to the 182.115 zone.
Read More: What are Safe Haven Currencies?
Final Thoughts On Today’s Analysis
As the EURUSD retracement unfolds and traders anticipate short-term weakness in the Pound, the forex market remains dynamic and challenging to predict. By staying vigilant and employing prudent trading strategies, traders can navigate these uncertainties with confidence. Watch our YouTube channel to learn more about our analysis.
