Remember that resistance level that we looked at last Friday? Well, it looks like the bulls won that round! This time they’re facing another challenge at the 1.8750 area. The pair just broke above a falling trend line that has been valid since late February. Not only that, but GBP/AUD is also having trouble breaking above the 200 SMA on the 1-hour time frame. The cherry on top of this setup sundae is the overbought signal that stochastic is flashing. Think we’re seeing an upside breakout after all? Or will the bears step up to bring the pair back to its downtrend?
Here’s another one for Aussie traders out there! AUD/JPY is lollygagging below the 86.50 minor psychological handle, which is a strong area of interest for the pair. What makes this setup interesting is that there’s also a bearish divergence popping up on the 4-hour chart. A short trade at current levels could make for a good trade if you place your stops above the minor psychological level. Of course, you could also wait for the pair to break above said level if you’re one of them Aussie bulls.
Trend traders huddle up! NZD/USD is trading around the .6850 minor psychological level, which is right smack at a rising channel support that has been valid since late February. This time around the trend line is also near the 100 and 200 SMAs on the 4-hour time frame while stochastic is chillin’ on the oversold region. Buying at current levels could get you a good reward-to-risk ratio especially if you aim for the previous highs. Just make sure you practice good risk management, aight?
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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.