Let’s take a look at AUD/USD testing resistance just below 1.0800 for the fourth time. Happy Pip has had her eye on this the entire week! Notice that Stochastic hits the overbought territory each time price tests the resistance level. Hmmm, will it hold this time around and send AUD/USD tumbling to 1.0600? Maybe. But perhaps it would be better to wait for reversal candlesticks before pulling the trigger. Who knows, the bulls could push the pair back up to its all time highs around 1.1000!
Hold up! I think I see a symmetrical triangle on GBP/JPY! It may only be a matter of time until the pair breaks out of its consolidation, so be on your toes for a breakout! If you’re planning to go long, keep an eye out for a strong break above yesterday’s high around 127.90. On the other hand, if you wanna short the pair, waiting for a bearish candle below 126.75 should be a good idea.
Last on our lineup for today is EUR/GBP, sporting what looks like a bearish divergence on the 4-hour timeframe. I know it’s tempting to short the pair at market but as Huck always says, “Good things come to those who wait.” So it may be better to wait for the pair to wait for reversal candles around its previous low, somewhere between the 38.2% and 50% Fibonacci retracement levels. You wouldn’t want to get burned IF all of a sudden the bulls charge and push the pair up to .9050, would you?
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.