If you like trading comdoll crosses, then you better watch out for a possible support at GBP/AUD’s 1.6850 handle! Aside from the level being a previous resistance and support area, there’s also a bullish divergence popping up! You could wait for stochastic to leave the oversold region before you enter a reversal or you could also jump in and place a wider stop.
Is that a breakout I see? AUD/USD is currently testing the 1.0300 handle, which is right smack at the top of a range on the daily chart. If the bulls fail to break the psychological level, then prepare for a bearish takeover with the overbought stochastic signal leading the bears’ way. If it does make a bullish breakout though, then y’all better be ready with your breakout game plans!
Unlike AUD/USD, EUR/JPY has a more convincing case for a breakout. The pair had just breached the 132.50 minor psychological level, which had been the resistance of an ascending triangle. You could wait for candlesticks or a possible resistance retest if you’re not sure about the move. Just make sure that you make room for volatility of a yen cross when setting your stop losses, aight?
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.