AUD/USD has been moving sideways between support around .9050 and resistance near .9300 for quite some time now, and it looks like the pair is currently stuck in the middle of the range. Stochastic is suggesting that another test of the resistance could be in the cards, as the oscillator is moving up from the oversold region. If resistance at .9300 still holds, AUD/USD could be on its way to the bottom of the range sooner or later!
Don’t look now, but GBP/JPY just bounced off resistance at the top of the rising channel on its 1-hour time frame! On top of that, the pair made a bearish divergence, as price made higher highs while stochastic showed lower highs. If pound bears are able to stay in control, they could push this pair back to the bottom of the channel around the 150.00 handle.
Now here’s a potential breakdown on USD/CAD. This pair sure loves to range but when it breaks out, it’s usually a signal that a new range is about to form. At the moment, USD/CAD is trading below the range support at the 1.0360 area and looks ready to make new lows. Stochastic is still pointing down, suggesting that selling pressure is still strong. If the pair climbs back inside the range though, it could mean another test of the top around 1.0435.
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.