While other currency pairs seem to have been trending strongly in the past several days, AUD/USD has been ranging heavily. It has been trading within a horizontal channel with resistance at 1.0575 and support at 1.0500. If you’re looking for a trade idea, then this could be a good one, as price has once again bounced from resistance. With the Stochastic pointing down, we may see price fall back down to the bottom of the range.
Second on my list is for my pretty Happy Pip! Looking at the 4-hour chart, it seems that USD/CAD has just formed a bullish flag. This means that the bulls could be revving up for another solid rally. If prices manages to break out of its consolidation and convincingly close above .9950, we could see the pair head to parity and beyond.
I spy with my little eye a rising trend line on USD/JPY! Stochastic is also in the oversold territory, which could mean that the pair could continue moving higher. If you’re planning to buy the pair today, you may want to see first whether the trend line will hold or not. After all, it’s always better to be safe than sorry! If the ascending trend line breaks, price could fall towards the 87.50 area before encountering support.
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.