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Steering clear of the FOMC madness later today?

Here’s a simple trend setup that doesn’t involve the U.S. dollar.

Before moving on, ICYMI, yesterday’s watchlist looked at AUD/USD’s trend pullback ahead of the Australian CPI release. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

U.S. CB consumer confidence index fell from 98.4 to 95.7 vs. 97.3 forecast

U.S. new home sales slowed from 640K to 590K vs. 663K consensus

U.K. BRC price shop index jumped from 3.1% to 4.4% in July

Australian quarterly headline CPI slowed from 2.1% to 1.8% vs. 1.9% expected

Australia’s trimmed mean CPI held steady at 1.5% as expected

German GfK consumer climate index slipped from -27.7 to -30.6

Upcoming Potential Catalysts on the Forex Economic Calendar:

U.S. headline and core durable goods orders at 12:30 pm GMT
U.S. pending home sales at 2:00 pm GMT
FOMC monetary policy statement at 6:00 pm GMT
FOMC press conference at 6:30 pm GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: GBP/AUD: 1-hour

GBP/AUD 1-hour Forex Chart

GBP/AUD 1-hour Forex Chart

Don’t look now, but this pair is already testing the very top of its channel!

This happens to be right smack in line with a confluence of inflection points that could keep gains in check.

For one, it’s right around the 50% Fib and the 1.4700 major psychological resistance. This also lines up with the 200 SMA dynamic inflection point and former support zone.

Are sellers likely to hop in soon?

Technical indicators are suggesting so, as the 100 SMA is below the 200 SMA and Stochastic is starting to turn lower from the overbought area. These confirm that bearish vibes are present and could keep the downtrend going.

In that case, GBP/AUD could make its way down to the swing low at 1.7200 or the channel bottom closer to the 1.7100 level.

Earlier today, Australia printed slightly weaker than expected inflation figures which could dampen RBA rate hike hopes. However, it’s also worth noting that the Land Down Under is on much better footing compared to the U.K. economy since the latter might be on the brink of a recession.

With that, there could be room for some downside for this pair, especially if risk-taking picks up later on.

Good luck and good trading!