As my main man Pip Surfer would say, the surf’s up on the Aussie baby! AUD/USD has been trading higher, as it’s been stuck within a rising channel. That may all come to an end soon though, as the pair is now approaching resistance at the 1.0450 level. If we see a solid candle close above the former high, it could signal a stronger move up to former highs at 1.0500 and 1.0600. On the other hand, if resistance holds strongly, I wouldn’t be surprised if we see a break of the channel and price action retest former lows at 1.0350.
Next up, here’s an interesting look at one of Cyclopip‘s favorites, Guppy. It seems that the pair has finally broken through a rising trend line and resistance-turned-support at 126.00. Is the break for real or will we see the pair rally higher? With the quarter coming to a close, it’ll be interesting to see how strongly this area of interest holds up.
Lastly, here’s a setup you don’t see everyday: an expanding channel. Currently, the pair is forming lower lows at a faster pace than it is forming lower highs. Now that price action is finding resistance at the top of the channel and Stochasic in overbought territory, we might just see sellers take control. I suggest waiting for some reversal candlesticks to form before putting up any short orders.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.