Awww, snap! After forming a double top, it looks like AUD/USD already traded past the neckline support. You know what, if there are enough bears in the market, I wouldn’t be surprised to see the pair soon trade around 1.0300. However, be wary of reversal candlesticks as they could signal that the bulls may soon push AUD/USD up to 1.0500.
Don’t look now, but is that an ascending triangle I see on Cable? Zoom in to the hourly time frame and you’ll see that the pair has been making higher lows but keeps on getting rejected around the 1.6050 minor psychological handle. The School of Pipsology tells us that this chart pattern usually signals an impending upside break. But don’t get too excited buying the pair! Take note of Stochastic showing a bearish divergence, making lower highs while price is making higher highs.
If you like trading cross currency pairs as much as my bud Cyclopip does, then this one’s for you! EUR/AUD is currently playing around the 1.2450 handle on the 1-hour chart, which isn’t surprising since it’s also near the top of the rising channel. Stochastic is also on the bears’ side for now as it’s just leaving the overbought area. Will the channel resistance keep the euro bulls at bay today?
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.