Trend traders huddle up! AUD/JPY is having trouble breaking above the 77.75 area, which isn’t surprising since it’s right smack at the 38.2% Fib levels on the 1-hour time frame. Not only that, but it also lines up with a falling trend line AND the 200 SMA on the chart. Does this mean that the Aussie is in for more losses against the yen? Not necessarily. Keep close tabs on this one in case the Aussie bulls gain enough momentum for an upside breakout!
Trend-trading not your thing? Here’s a range setup for ya! After bouncing from the .7250 levels, NZD/USD is now testing a mid-range support level just above the .7100 major psychological area. What’s more, stochastic is also about to hit the oversold territory. Keep in mind that mid-range trades can be tricky and barely rewarding in terms of reward-to-risk ratio. Make sure you manage your risk well if you’re planning on trading this opportunity!
Breakout alert! With GBP/AUD still not breaking below the 1.7200 MaPs, it opens up the possibility that we’re looking at a double bottom in the making. If you’ve read the School of Pipsology, then you’ll know that double bottoms usually break higher, with the breakout above the “neckline” as long as the distance between the bottoms and the neckline. You have a couple more days to confirm the pattern though, so stick around and plan your strategy well for this potential breakout!
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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.