It’d be a crime if I didn’t call this out… There’s a rising trend line break on EUR/USD! After dancing to the beat of a rising trend line for a few weeks, EUR/USD finally got tired and broke down yesterday. Now that the rising trend line support has been broken, it seems that the pair may start heading lower, possibly to former lows at 1.2450 and 1.2300! Do be careful though… Stochastic is about to hit oversold territory, which could mean that the sellers could be running out of steam!
Next up, let’s take another look at that EUR/GBP chart I pointed out earlier this week. The pair is still trading within an ascending channel and looks like it’s gonna test the rising support line once again. With Stochastic now entering oversold territory, I can just imagine buyers licking their chops and waiting for the chance to push this pair back up to the .8200 handle. For now, I suggest busting out a couple of cold ones, chillin’ out, and waiting for some candlestick confirmation before putting up a position.
After staging a strong rally for the past couple of weeks, AUD/USD seems to have run out of steam after hitting the 1.0200 major psychological resistance level. The pair could pull back to the former resistance level at parity, which happens to be closely in line with the 38.2% Fibonacci retracement level. Stochastic is already in the oversold zone but we have yet to see a crossover before AUD/USD could bounce. Make sure you watch out for reversal candlestick patterns if you plan to jump in!
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.