Remember the mid-range setup that we looked at early this week? Well, it has played out perfectly! In fact, the pair is now testing the range’s resistance near the 93.00 handle. Do you think it will hold? A break above 93.00 could take the pair all the way to 95.00 while a resistance bounce drag the pair all the way back to the 91.00 range support. Read up on trading ranges and breakouts if you’re not sure how to trade this setup!
I hope you’re in the mood to take countertrend trades because this is a good one! EUR/USD is about to bounce from the 1.3550 area, which is right smack at a mid-channel support. It also helps that Stochastic is in the oversold area. You could place your stops just below the support zone if you’re planning on buying this pair but you could also wait for a retest of the channel ceiling if you’re more comfortable with shorting the euro.
Last one for today is this potential head and shoulders setup on GBP/AUD. A consolidation at the 1.8700 handle could make way for a move towards the “neckline” near 1.8150. The pair hasn’t even reached 1.8700 though, and we still have a lot of candles to cover before we confirm a “shoulder” on the daily chart. Just keep your eyes peeled on this one for now.
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.