Yep,this here is the updated chart from last Friday’s bounce-from-resistance setup on EUR/USD’s 1-hour forex chart. You know what they say, “if life gives ya lemons, make some lemonade.” But before anything else, congratulations to those who found a trade based on last Friday’s setup. You should have about 130 pips in the bag by now.
Moving on, price seems to be hesitating just above the 1.0950 minor psychological area, so for those who are still short on this pair, y’all better move your stops. And for those who are looking for opportunities to go long, you may get one soon enough since stochastic is already pointing up after taking a break over at the oversold region, so sellers may be exhausted already. If price does move up, euro bulls would likely gun for the previous resistance area at 1.1080, although it could also start a much larger move, based on the triangle setup I identified on today’s daily chart art.
Yep,this here is the updated chart from last Friday’s bounce-from-resistance setup on EUR/GBP’s 1-hour forex chart. Woah! I don’t know why, but I just got a feeling of déjà vu. Getting back on track, if you found a trade based on last Friday’s intraday charts update, then congratulations on your 40-50 pips profit. If you also took last Thursday’s setup, then you also probably got an extra 70-80 pips in the bag.
For today’s play, our directional bias is to the upside since the pair may potentially form a double bottom, with the neckline at the 0.7080 handle. If the double bottom is validated, then the pair could move up for around 90 pips since that is roughly the height of the forex chart pattern, although price may find premature resistance at the 0.7150 minor psychological, price area of significant market interest.
After a majestic 600-pip move to the upside, EUR/AUD got rejected when it reached the 1.5280 handle. Now price is fluctuating around the 1.5050 minor psychological level, a price area of recent market interest. If we apply the Fibonacci tool, we can also see that current price levels are near the 38.2% Fibonacci retracement level. And since the overall trend is still up and the the moving averages are still in uptrend mode, our directional bias is also to the upside. Stochastic is indicating potentially overbought conditions, though, so forex traders who are bullish on the pair may be exhausted already. In addition the moving averages are beginning to move closer together for a possible cross-over into downtrend mode.
As usual, make sure to practice proper risk management should you find a trade based on any of these charts.
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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.AUD/CAD 1-hour Forex Chart