First up for today is a simple range setup on EUR/USD’s 4-hour chart. The pair is consolidating around the 1.2830 area, which is a former support zone in the chart. And check it out – Stochastic is in the oversold territory! Will the range bottom continue to serve as support for EUR/USD or will the euro bears push the pair below 1.2800 today?
Next up is a hot divergence action on EUR/GBP’s 4-hour chart. Aside from hesitating at the .8000 major psychological handle, the pair is also sporting a possible bullish divergence. A stop loss below the .8000 area could give a good reward-to-risk trade if you’re buying the pair, but you could also wait for a break below the level if you’re one of them euro bears.
Somebody holler at Happy Pip because this comdoll setup is too good to miss! AUD/USD just printed a doji on the 4-hour chart, which opens up a possible morning star pattern right smack at the 38.2% and 50% Fib areas. Stochastic is on the oversold region too, so you better get your trading plans ready if you’re planning on getting a piece of the Aussie uptrend.
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.