If you love trend trading, then you’re gonna love this setup! EUR/GBP is currently retesting a rising trend line on the daily chart, with yesterday’s candle forming a spinning top-like candle. With Stochastic now entering oversold conditions, we may just see buyers come back into the markets. Personally, I’d wait for a little more confirmation, such as a strong bullish candle or for Stochastic to crossover before I think about establishing a long position on this pair.
Are the good times about to come to an end for the pound bulls? After all, it looks like Guppy is about to form a double top! The pair is currently finding resistance just below the 129.50 mark and with Stochastic deep in overbought territory, I wouldn’t be surprised if we see this pair head south. Be on the lookout for some bearish marubozu candles as proof that sellers are back in control.
This setup on AUD/JPY is a beaut, ain’t it? With resistance at the 83.50 handle and support at 80.00, the range on the pair’s daily chart has been keeping price in check for about four months now. At the moment, price is testing the top of the channel, so we have another break-or-bounce opportunity on our hands. Can’t decide on whether to buy or sell? Wait for candlestick patterns to form and give you confirmation!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.