In this video, the Trader Guy looks at the currency pairs USD/JPY and AUD/USD for the July 18th session.
USD/JPY — We formed a perfect shooting star right at the 105.00 level. This is an area that we cleared quite nicely during the day and then turned back around. This is a very negative sign, but I am not necessarily thinking that we are going to fall apart. I think that, we will probably drift down to the 103.00 level, on a breakdown below the bottom of this candle. Then it could build enough momentum to go higher. Alternatively though, if we an break above the top of this shooting star candle, then it is a very bullish sign as well.
AUD/USD — We did much the same. We rallied and then turned back around to form a rather negative candle. Also, we were preceded by this shooting star. Quite frankly, that is probably more negative sign. I think that the 0.7500 level will be a bit of a soft floor in this market and we could see a bit of a bounce from there. We could go lower and I don’t doubt that at all. Gold markets have been a little bit healthier. So, I would think that sooner or later there is going to be a little bit of a knock on effect. I don’t really like selling for quick profits. But I see nothing on this chart that tell me to start buying.