Let’s start with a treat for the countertrend traders! EUR/AUD looks like it’s about to bounce from the 1.5250 minor psychological level, which is right smack at a falling channel support on the 1-hour time frame. What’s more, stochastic has also just left the oversold territory! Is the euro about to gain on the Aussie? A long trade at current levels could provide you with a decent reward-to-risk ratio especially if you aim for the channel’s resistance. Don’t be so quick to buy this one though, as countertrend trading isn’t for everyone!
Here’s one for the breakout warriors! EUR/GBP has just bounced from the .7750 psychological level, which lines up with not only the 200 SMA on the 4-hour chart but also the falling trend line resistance that the pair had broken early this week. If the pair has indeed broken higher, then buying at this retest is a good way to enter a potential start to an uptrend. If you still think that this one is a fakeout though, then you could also wait for a couple more candlesticks to confirm a bullish move.
Support alert! USD/CHF is testing the .9650 minor psychological level, which lines up with a mid-channel support on the daily time frame. Not only that, but stochastic is also about to pop up an oversold signal. Is it time for the Greenback to pop back up or is momentum still on the bears side? In any case, make sure put your strategies in a trading plan and practice good risk management when trading this setup!
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.