Will you look at that? Zooming in to the hourly chart, we see that EUR/USD is now testing support at the rising trend line. If you’re feeling bullish for the euro, you may want to wait for a bullish candlestick to materialize around the support area before pulling the trigger. However, if you’re rooting for the dollar, wait for a strong break below the trend line. This could mean that the pair is on its way down to 1.2450.
Doji alert! Yesterday’s candle on EUR/AUD just closed as a doji. Sweet, eh? But you know what, it doesn’t stop there! To make the setup even more enticing for the bears, the candle materialized just below the 50% Fibonacci retracement level and a bearish divergence has materialized with Stochastic making higher highs while price is making lower highs. If you’re thinking of shorting the pair, just be careful not to go loco. A strong bullish close above yesterday’s high may just signal that EUR/AUD will trade back up to 1.3000.
After bouncing off support around .7905, it looks like EUR/GBP was finally able to trade below it earlier today. Will we see the pair go all the way down to .7800? Maybe, if there are enough sellers in the market. If there’s not, we could see EUR/GBP hustle back up to test resistance at .7950.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.