NZDUSD climbing higher for a second day in a row, price action might be forming a head and shoulders pattern, if that proves to be the case the pair is in a process of constructing the right shoulder. Last week the pair found support at 08190, these levels acted as support earlier in October as well. Below these levels would be a bearish signal and would complete the head and shoulders pattern as well. Resistance is at 0.8400 – 0.8430, a break above would be a bullish signal with targets at the October highs.
AUDUSD closing the trading day negatively yesterday, and forming a doji candle on the daily time frame. The Doji candle might be indicative for a bearish signal. Sustaining above yesterday’s highs would be a bullish signal; currently the preferred strategy is selling the pair as long as it’s below yesterday’s highs. Below Monday’s lows would be a bearish signal. Seeking confirmation on the NZDUSD is a good idea as well as this two pairs tend to move in the same direction.
GBPUSD closed positively yesterday, for a 2nd day in a row after the pair placed a bottom on Monday as the pair found support at 1.5901. This level served as support in October and September as well. The pair might be added to test the October highs once again. Support is currently at 1.5996 a break below would be a bearish signal. Alternatively nearest resistance is at 1.6120. Bias is to the upside as long as the pair is traded above 1.5996.