If you’re a range trader, then you’re going to like what AUD/USD is showing right now. As you can see, AUD/USD is quickly approaching the bottom of the horizontal channel at 1.0170. Given how this level has held as support before and the oversold Stochastic, it seems that we’ve got a nice technical setup in our hands. If you’re bullish on the pair, then going long at support could be a good idea. You could aim for 1.0580, which is the upper boundary of the formation.
Fan of breakouts? Check out this dope setup on CAD/JPY’s hourly chart. The pair has been trading sideways for quite some time now and a catalyst could cause it to breakout of its range soon. Watch the upper and lower boundaries of the sideways channel folks, as an upside break could take the pair to the former high at 98.88 while a downside break could bring the pair down to 93.50.
Of course I’m not going to leave the trend traders hanging. EUR/USD, after pulling back for several weeks, seems to be showing signs of selling-off again. For one, a hammer formed right at the 50% Fibonacci retracement level. Second, the candle that followed the hammer was a red marubozu, which is strong bearish signal. If you’re part of the bear camp, now could be a good time to sell, as price could fall back down to the 1.2800 major psychological level.
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.