Reversal alert! EUR/CAD’s downtrend might soon turn, as the pair just formed a double bottom forex chart pattern on its 1-hour time frame. The neckline appears to be holding as resistance for now, but an upside break past the 1.4100 major psychological mark could confirm that an uptrend is underway. If so, the pair could be in for at least 100 pips in gains, which is the same height as the formation. Stochastic is pointing down, indicating that euro bears are in control of price action and might push EUR/CAD back down to the previous lows near the 1.4000 major psychological mark.
Y’all know I can’t resist a good break-and-retest setup, right? Here’s a neat one on EUR/AUD’s 4-hour forex chart! The pair appears to have completed its correction, as it is finding support at the 61.8% Fibonacci retracement level and a former resistance area. Stochastic is moving north, which means that buyers could have enough energy to push price back to its previous highs around the 1.5300 major psychological resistance. However, if sellers refuse to give up, EUR/AUD might break below the area of interest and head south to the next support level around 1.4250.
EUR/GBP has got some range-bound price action goin’ on, as the pair has been moving sideways between support at the .7800 major psychological mark and resistance near the .8050 minor psychological handle. Price just bounced off the bottom of the range and may move back to the top or at least until the middle around .7900-.7950. Take note though that stochastic has just made it to the overbought zone and is starting to move down, suggesting that selling pressure is building up and might be enough to trigger a downside break. Better review our lesson on How to Trade Breakouts if you think that’s a possibility!
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.