Resistance alert! GBP/USD is having trouble sustaining its climb past the 100 SMA resistance, but it seems that bulls can still push for a test of the falling trend line on the 1-hour time frame. Stochastic has started moving down then turned back up again, suggesting that GBP/USD could head a little higher. The 200 SMA is close to the trend line and the 1.6800 major psychological level, which might act as a stronger resistance area for the pair.
If there’s one thing I know about USD/CAD, it’s that this forex pair loves its ranges! On the 1-hour chart, price has been bouncing off support around 1.0830 and resistance just above the 1.0900 major psychological level. It seems ready to make another test of resistance right now, with stochastic heading down from the overbought zone. If the top of the range holds, USD/CAD might make its way back to the bottom.
If you’re in the mood for a longer-term countertrend trade, then you might wanna take a look at this potential channel bounce on AUD/USD’s 4-hour forex chart. The pair is already making its way to the channel support right around the .9150 minor psychological level while stochastic has just reached the oversold area. Buyers could start jumping in once the oscillator moves higher, which might lead to a bounce off the bottom of the channel right until the middle.
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.