AUD/USD: the multiple tests in a trading range.

At a glance, we can notice that the cross is in a trading range (see the yellow rectangle), between 0.72 and 0.727. Those levels are also respectively the 38.20% FIBO level and 50% FIBO level, of a set-up top-bottom 0.755 and 0.70. The 50% FIBO level represents also the upper level of the previous gap-down (see the yellow ellipse).

In this way, the mentioned price levels are very important because they are redundant. Some useful trading strategies should be the following: 

1) a short set-up from top to bottom (in the trading range, 0.727-0.72);

2) a long set-up from bottom to top (in the trading range, 0.72-0.727);

3) a short set-up of a wider scope, with a longer time frame, outside the rectangle; in other words, short at the break of 0.72, with confirmations and targets the lower FIBO levels, before 0.712, then 0.70;

4) a long set-up of a wider scope, with a longer time frame, outside the rectangle; in other words, long at the break of 0.727, with confirmations and targets the upper FIBO levels, before 0.733, then 0.743.

With this chart framework, the rectangle (or trading range) is the real focus: so, it is very important to look at it, in order to build our trading strategy, in one direction or another.

The following chart is explicative, of course. 

Chart from Markets.com

If we change the time frame, with a 4H chart, the view is the same.

The chart shows the multiple tests of the cross, at the tops of the rectangle. The tests are highlighted also by other indicators and oscillators, like RSI, CCI, and Williams %R.

The cross is in the overbought area: +100 for CCI, -20 for Williams %R, and +70 for RSI. This should represent a trend change (from an uptrend to a downtrend, from overbought area to oversold area) if the confirmations will occur, as previously said. At the moment it could be just a movement included in the trading range and a repulsion area with the tops of the rectangle as a resistance area.

The same thing is valuable in the hypothesis of the uptrend continuation (and not a reversal, in this way), with the break of the mentioned resistance area. 

To conclude, let's keep focused on the rectangle and on its levels, also if we look at the candlesticks chart: there are a lot of Doji candles and candles with large shadows; they represent a lack of trend, for the moment and otherwise, they are the symbol of a real trading range area.

Chart from Markets.com

EUR/GBP: a test of the lows.

At first glance, we can notice the repeated test of the bottoms;  this fact is known as a confirmation of the buyers' strength in that resistance area: for this purpose, look at the green arrows; the fact is recurring six times if we consider also the last trading session; a break with other confirmations could trigger a bearish set-up until 61.80% FIBO level (at about 0.874) or even below that level, at about 0.867, the lower side of the first rectangle area (from April to June).

Indeed, the mentioned lows are highlighted also by the lower side of the following rectangle areas (from June to September; from September until today. The last rectangle area is bordered at the top by 23.60% FIBO level that links the top (at about 0.949) and the double bottoms, at about 0.827 (100% retracement). 

The chart shows also the discharge of both oversold and volatility, from the lower band of the BBs and the consequential rebound in prices: it is very important to follow the next trading sessions, in order to understand the market moves and in order to set a bullish or trading strategy, respectively; the chart picture is very promising in a rebound, considering what happened before. 

Chart from Markets.com

To conclude, the price is also near the 50% FIBO level at about 0.888, a critical level in one direction or another. Let's look at it, in assessing the market intentions.