Sometimes “keep it simple” is the best policy, and it doesn’t get much simpler than this resistance play on AUD/USD. After a strong spike higher in the Asia trading session, we can see forex traders are all about selling at this .7700 area. Sellers were in control here throughout August and September, and once again, they’re holding ground in October. Odds are this pair moves back to the downside, and if it does, that previous swing low could provide minor short-term support.
After some up and down action over the past few weeks, USD/CAD looks like it’ll end October on a high note…or will it? After its recent rally from 1.3000 to current trading just under 1.3400, we see a rising wedge forming. This pattern tends to precede a reversal back to the downside after an up move, so don’t be surprised if we see a break lower. But I wouldn’t write-off an upside break either with the broad strength in the Greenback and recent risk aversion sentiment.
The euro has been on a tear in the past few sessions thanks to positive economic data, but is this just a bounce in a strong trend lower? We’ll see today for EUR/USD as it tests a couple of technical arguments for sellers to take a dip in this move as the market is now testing Fibonacci retracement levels and the falling moving averages. EUR/USD might wanna see how this plays out before picking a direction, but with the move lower recently, a return to the downside is the high probability trade.
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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.
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