I’d be a villain if I didn’t call this out… There’s a clear rising trend line break on AUD/USD’s 4-hour chart! After dancing to the beat of a rising trend line for a few weeks, AUD/USD finally showed some weakness and closed convincingly below support. It seems that the pair is now in free-fall mode as it heads to the 1.0300 area. Be careful jumping in though! The Stochastic shows that conditions are severely oversold, which could mean that a pullback could happen soon!
Heads up, forex homies, we’ve got another range on our hands. This time, it’s on USD/JPY, and boy is it ripe for the picking! The pair has been trading within a 100-pip range for a while, and now it’s just a few pips shy of its long-term resistance. Wanna side with the bears? Wait for reversal patterns to form before getting short. Think the bulls will force a breakout? Play it safe and wait for a solid close above the resistance zone before you commit to going long.
Awwww, snap! Is that a bullish pennant I see? After a strong move up yesterday, EUR/JPY is now just consolidating above the 102.00 handle. If there are still enough buyers in the market, a break above yesterday’s high around 102.50 could mean that we’ll soon see the pair rally to 104.00. However, a strong break below the consolidation could signal that EUR/JPY is on its way back down to 101.00.
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.