Slow and steady does it! AUD/USD is still crawling inside a rising channel on its 4-hour time frame as the pair tries to keep its uptrend intact. Right now, it's hovering at the middle of the channel and seems to be headed for the bottom. Aussie bears could still push this pair down by 50 pips or so until the channel support around 1.0350. If you're an Aussie bull though, you can wait for the pair to bounce from the bottom of the channel before jumping aboard the uptrend.
If you're a fan of break and retest plays, then here's a setup you might like. USD/JPY just surged above the 82.00 major psychological handle last week, but the rally seems to be running out of steam. The pair could pull back to the 50% Fibonacci retracement level, which is right in line with the former resistance level around 82.20. Stochastic is currently in the oversold zone though, as USD/JPY seems to be finding support at the 38.2% Fib level.
Last but certainly not least, feast your eyes on this rising wedge formation on EUR/GBP's 4-hour time frame. The pair has been in an uptrend lately but is starting to consolidate tightly, possibly gearing up for a strong breakout. Stochastic is currently on middle ground, barely providing any clues on which way the pair could go. Don't be shy to take a peek at our Chart Patterns Cheat Sheet if you plan to trade this pair!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.
Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.
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