GBP Stronger. GBPAUD in Symmetrical Pennant. Trading Long Nikkei.

Welcome to this week’s Market Blast Technicals.

Free Valutrades Signals!  Click here: https://www.valutrades.com/en/trading-signals

I’m Brad Alexander and on behalf of Valutrades, today we will look at the Nikkei (JP225), EURJPY, EURAUD, EURGBP, and GBPAUD.

Quite simply, GBP is stronger against almost every other currency, based mostly on COVID optimism as the government is trying to avoid further lockdowns.

GBPAUD is the main exception with price action in consolidation, forming a symmetrical pennant, so we could see a big move going into the new year.

EURGBP has reached a key level of support, which used to be the neckline of this inverse head and shoulders pattern from last month.

If price action breaks support, the next key level below is just above £0.838.

So, we see why GBPAUD is consolidating as AUD is strong as well, so we have 2 strong currencies battling together.

EURAUD is in a similar situation to EURGBP as price action has reached a key level of support, which was also resistance in November.

If the downtrend continues we have a few key levels below going into the new year.

The weakest currency seems to be JPY but watch out for the Stochastic Oscillator which, in every case, is displaying an overbought signal.

A weaker JPY usually means good news for the Nikkei as Japanese companies can export more goods.

We see bullish indications on the Nikkei chart and we will monitor this into the new year.

That’s all for this year!

See you in 2022.

Thanks for watching and don’t forget to subscribe to Valutrades Signals and the link will be in this video’s description below.

Also, subscribe to our YouTube channel and register on the Valutrades website to get notifications on new content as it happens.

That’s all for now.  Happy trading with Valutrades and we will see you next time.

CFDs and FX are leveraged products and your capital may be at risk.