I spy with my Ray-B-covered eyes a potential breakout setup on EUR/USD‘s 4-hour chart! It’s a tossup though, on whether it’s a descending triangle that signals a reversal or a pennant that hints of a continuation to EUR/USD’s holiday rally. The consolidation is getting tight, folks, so y’all better watch this one closely!
Don’t look now, but AUD/USD is bouncing at the mid-channel support! The Aussie bulls seem to get support from the area, which is near the 1.0400 major psychological handle. Stochastic is also in the oversold region so jumping in is a good idea. Just make sure you put your stop losses below the support level, aight?
Somebody holler at Cyclopip because this EUR/GBP setup is too good to miss! The pair looks like it’s heading fast towards the .8100 area, which is near the rising trend line support on the daily chart. Be careful though, as Stochastic is still nowhere near the oversold levels. Buying at a trend line retest is a good idea if you aim for the previous highs and place your stops just below the inflection area.
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.