Bottoms up! EUR/GBP is currently testing the bottom of the long-term falling channel on its daily time frame while stochastic is reflecting oversold conditions. In fact, the oscillator is already starting to move higher, suggesting that bulls are in control at the moment. A strong bounce could take the pair back to the top of the channel or at least until the middle while a breakdown could indicate that a longer-term downtrend is in the cards.
Here’s another long-term trend play that you might be interested in. On its daily chart, EUR/CAD is also testing the bottom of its channel. Stochastic hasn’t quite reached the oversold area yet but it seems ready to move higher, which suggests that euro bulls could keep the pair afloat. A rally could push the pair up to the channel resistance, right around the 1.4500 major psychological mark. Make sure you set your stops right if you plan to go long!
If you’re a fan of day trades, then this one is just for you! EUR/AUD is currently stalling around an area of interest somewhere around the 1.4400 major psychological resistance. The pair just got rejected at the 61.8% Fibonacci retracement level and seems ready to head south, as a bearish divergence has formed recently. Better check if this setup meets the 9 Rules for Trading Divergences if you’re thinking of shorting.
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.