Confluence, baby! AUD/USD looks ready to test the trend line support, Fibonacci retracement levels, and SMAs on the 1-hour time frame. With stochastic almost indicating oversold forex conditions, a bounce just might take place soon. The 61.8% Fib level is closest to the trend line and is also within a few pips away from the former resistance at the .9300 major psychological level. Better keep your eyes glued on these levels, fellas!
See this area of interest on EUR/AUD’s 4-hour forex time frame? Well, it looks like price just might retrace to that region, as it lines up with the 1.5100 major psychological level, 200 SMA, and the 50% Fib! If the selloff is too strong, a pullback might last only up to the 38.2% Fib level which coincides with the 1.5000 mark and the 100 SMA. Stochastic just reached the overbought area, which means that euro bears are getting ready to attack.
As Happy Pip pointed out with her AUD/JPY long trade idea this week, this setup is just too sweet to ignore! AUD/JPY is showing some hesitation in its attempt to break past the 96.00 barrier and it just might pull back to the resistance turned support at 93.00. Stochastic is still pointing down, indicating that there’s enough selling pressure to spark a retracement. Watch out for reversal signals around the 38.2% Fib and 100 SMA, as these could also act as support.
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.