I don’t usually look at weekly charts, but when I do, I make sure my analysis counts! At least, that’s what I’d like to think. As you can see from the chart I posted above, EUR/JPY is at a very significant crossroad as it’s about to test a long-term falling trend line resistance. Will it hold or will it break? Nobody can say for certain, but given overbought Stochastic and how the 50% Fibonacci retracement level lines up nicely with the falling trend line, we could see the bears take over again. Keep a close eye on this pair for a possible short trade folks!
The pair, after a strong rally up, is facing significant resistance around 78.80. This is the third time the falling trend line resistance has been tested, and it could very well break. After all, the pair has just made a “higher low” and the Stochastic indicates that conditions aren’t overdone yet. But as always, it’s better to wait for confirmation. A convincing close above the falling trend line could mean that the bulls have complete control of the pair.
After moving lower for more than 3 weeks, it appears that AUD/USD’s downtrend could come to a complete halt. On Friday, price wasn’t able to break through significant support. It closed just above it, suggesting that the bulls were able to defend the level. With the Stochastic showing that conditions are overbought, will we see price bounce back again?
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.