Are my Ray B’s just foggy, or is that a pair of double bottoms I see on the 1-hour timeframe of AUD/USD? Oh wait, I think it’s the real deal! According to the School of Pipsology, it is usually taken as a bullish chart pattern. Stochastic is also indicating upward momentum, with the lines having just crossed in the oversold area. If there are enough buyers in the market, we could see the pair test the neckline resistance at parity. Heck, if there are enough bulls, AUD/USD may even go back up to 1.0300! Just don’t get too excited though. A strong close below support at .9900 could signal that the pair is going to tumble all the way down to .9700.
Remember the daily chart of EUR/JPY that I posted last week? Well, zooming in on the 1-hour timeframe it looks like the pair is just chillin’ like ice cream fillin’ at the pair’s yearly lows. You’ll probably get a handful of pips either by playing the range or waiting for a break. If you think the range will stay intact, you may want to sell around resistance at 101.70 and buy around 101.12. On the other hand, if think a breakout will happen soon, watch out for strong breaks at the top/bottom of the consolidation!
Finally, here’s GBP/USD for y’all! Using the Fibonacci retracement tool, it looks like the pair is finding resistance at the 38.2% Fib level. Will resistance hold and send the pair back down to 1.5400? Err, I’m not sure. But a strong bullish candlestick close above the 1.5500 area would probably mean that the pound is gonna hustle some muscle back up to 1.5750. So watch out!
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.