Trend line bounce alert! We’ve been watching this EUR/USD rising channel since last week and this time the pair has reached a trend line support around the 1.0800 major psychological level. In addition, Stochastic is also hinting at a possible bullish divergence in the making. Will euro bulls push for another bounce today, or will the bears finally win this tug-o-pips and force a downside breakout?
Here’s another trend play for ya! AUD/USD has seen a fakeout last week with its trip to the .7150 area. Right now the pair is headed towards the .7050 levels, which lines up with the mid-channel line and 100 SMA on the 1-hour chart. Not only that, but like in EUR/USD, this one is also showing signs of a bullish divergence in the making. Aussie bulls could get some pips if you put your stops below the channel and 200 SMA and aim for new highs. Even better, you could also wait for a retest of the channel support and 200 SMA if you think that the Aussie still has some room for retracement.
Swing traders huddle up! After hitting a bottom at the 2.0000 area last week, GBP/AUD is now trading higher and might be headed to the 2.0350 area. What makes the setup interesting is that it’s also near the 38.2% Fib on the 4-hour chart as well as an area of interest since December 2015. Are we looking at a future support-turned-resistance play in the making? Read up on trading Fibonacci levels or currency crosses if you haven’t yet!
Forex Chart Settings:
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.