Ha! It looks like the support on AUD/CAD’s forex range is holdin’ like a boss! The pair just made a strong bounce off the bottom around .9830 and appears to be headed for the top of the range around the .9950 minor psychological resistance once more. Stochastic is already indicating overbought conditions and seems ready to move down, which means that Aussie bears could take control of price action sooner or later. If you’re patient enough, you could wait for a test of the range resistance, but there’s also a good chance that AUD/CAD might drop from its current levels!
Check out another divergence forming on CAD/JPY’s 1-hour forex chart! The last time I showed y’all a bullish divergence on this pair, price did bounce from channel support and went all the way to the top. This time, the pair is testing the top of the channel with a bearish divergence, hinting at a potential drop back to the range support somewhere around 96.50 to 97.00. Stochastic is already crawling down, which means that Loonie sellers are gaining strength. If you’re planning on shorting this pair, make sure you set your stop past the 98.00 major psychological resistance and the top of the channel.
More gains the cards for AUD/USD? The pair found support at the bottom of the rising channel on its 4-hour time frame and may be headed further north, as the top of the channel is still around a hundred pips away. Stochastic is also climbing, which means that Aussie bulls are strong enough to push price back to the top of the range near the .8900 major psychological resistance. However, if the mid-channel area of interest holds as near-term resistance, AUD/USD could still make its way back to the channel support at the .8750 minor psychological level.
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.