AUD/USD: 4-hour
First up is a breakout play on AUD/USD. After sweeping through the 1.0600 mark earlier this week, the Aussie has stuck into tight consolidation and is now forming a bearish flag. Remember playas, this is normal seen as a sign that sellers are just chillin’ and gearing up for another strong down move. I’d wait for solid bearish candle to close below the recent lows before putting up some short positions!
USD/CAD: 4-hour
Ha! Looks like that falling trend line was too tough to crack for the bulls! Now that a bearish marubozu candle has formed and Stochastic has crossed over out of overbought territory, it might be time to crank up those short positions. If you remain unconvinced, you can wait for another test of the resistance line but take note, the more times a trend line is tested, the stronger the breakout will be if it fails to hold!
GBP/JPY: 1-hour
Lastly, here’s a look at Guppy. It looks like Cyclopip is about to get triggered on his latest trade, as the pair is currently sitting just below the 128.00 handle. This also happens to line up with the 50% Fibonacci level and has also served as an area of interest in the past. Now that Stochastic is deep in overbought territory, will we see sellers come back to stake their claim on this pair? I suggest waiting for some Fib sticks for more confirmation that this pair is headed lower.
Before you get carried away with all these chart patterns, remember that technical analysis is only half the story.
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.
