Trade Charting

I had warned you in my weekend update to watch the GBP/USD for any bullish run from the new wedge breakout and it delivered in spades on Monday so I hope you all caught some of this move! The US$ remains weak BUT is currently at a potential support zone so watch for any reaction.

This was the introduction to my weekend post with the relevant warning highlighted:

Last week: In my weekend update from two weeks ago, on April 4^th 2021, I noted bullish-reversal descending wedge patterns on the 4hr charts of Gold, the EUR/USD, AUD/USD, NZD/USD and GBP/USD (see screen shot below). Since that update, bullish wedge breakouts have triggered and yielded $40 on Gold, 200 pips on the EUR/USD, 120 pips on the AUD/USD and 130 pips on the NZD/USD so I hope you all caught some of this action! The GBP/USD looks like it is getting ready to make a bullish wedge breakout so might be worth monitoring this week. These breakout moves were no doubt helped by the weaker US$ and US Treasury yields also closed lower for the week. The melt up with US stocks has continued with the S&P500, DJIA, NASDAQ and Russell-2000 all closing higher for the week and the first two, yet again, printing new all-time Highs. However, the more risk-sensitive Russell-2000 was the laggard of the four which should be noted with some element of caution. The other cautionary point to keep in mind is that divergence continues on the S&P500 between volume and momentum; with volume lower but bullish momentum higher. However, for the ASX-200 both volume and bullish momentum were on the rise last week. Earnings season ramps up this week so watch for any impact of results on overall market sentiment.

Data: no high impact data today: