Range traders, unite! AUD/USD is showing a potential range play on its 4-hour forex time frame, as the pair just bounced off the floor near the .7600 major psychological level. Price could head north to the top of the range at the .7900 major psychological resistance since stochastic is moving up and indicating that Aussie bears are charging. Apart from that, a double bottom can be seen at the bottom of the range, adding confirmation that an uptrend might take place.
Here’s a simple retracement play on EUR/USD’s 4-hour forex chart. The pair recently made a double top reversal pattern then broke below the neckline, suggesting that a downtrend is bound to take place. Before pushing the pair any lower, sellers seem to be gathering more energy on this pullback to the 38.2% Fibonacci retracement level. This area might hold as resistance since it lines up with the broken neckline support. Better wait for stochastic to reach the overbought region if you’re gonna short!
If you fancy breakouts, you can’t miss this one on NZD/USD’s 4-hour forex chart! The pair just surged past the symmetrical triangle resistance, signalling that it is ready for more gains. Take note that the chart pattern is approximately 300 pips in height, which means that the breakout rally could be of the same size. Stochastic is still pointing up so there’s enough buying momentum to sustain the climb, but do watch out for potential resistance around the previous highs at the .7700 major psychological level.
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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.