It looks like GBP/USD can’t wait to get down… even though it ain’t Friday yet! If the falling trend line on the 4-hour time frame holds, pound bears would be in for some fun, fun, fun. Stochastic is already crawling out of the overbought area, suggesting that the pair’s downtrend would resume. If it does, cable could fall all the way down to last week’s lows around 1.6200. But before you short this pair, you better take a look at the upcoming economic data from the U.K. first!
Gotta bounce, yo! This currency cross pair has been bouncing up and down between support around 1.2050 and resistance at 1.2300. EUR/CHF seems to be aiming for the top of the range again but stochastic suggests that buyers could run out of steam pretty soon. If sellers take over, EUR/CHF could drop back to the bottom of the range. Let’s see if it holds then!
How high can the Aussie go? AUD/USD has been on a tear lately, after bouncing from the bottom of the channel, just above the 1.0500 major psychological level. It seems poised to test the top of the channel, which is around the 1.0800 handle. However, its rally could be cut short since a bearish divergence just formed. If you’re part of the Aussie bear camp, you should check our 9 Rules for Trading Divergences first before going short!
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 Economic Roundup. Check him out, playas!