If you liked the setup I pointed out on AUD/USD yesterday, you’ll love what I found when I zoomed out to the daily timeframe! Connecting the pair’s most recent highs, we see that AUD/USD is now trading around the falling trend line. Will resistance hold? If reversal candlesticks materialize around the 1.0400 handle, we could soon see price drop to support around 1.0200. But if resistance breaks, I wouldn’t be surprised to see AUD/USD skyrocket to 1.0600!
Yo homies, feast your eyes on this beauty! EUR/JPY has formed a rising wedge around its previous highs on the 4-hour timeframe. On top of that, Stochastic indicates a bearish divergence, making lower highs while price is making higher highs. Sweet, eh?? But don’t get too excited. Who knows, there could still be enough bulls in the market to push the pair to 106.00.
Not sure if my newly done ‘fro is just getting in the way of my vision, but I think that’s a head and shoulders chart pattern I see on USD/CHF. The School of Pipsology tells us that this is widely considered as a bearish signal and so, going short at the strong break of neckline support around .9400 might be a good idea. However, if you’re bullish on the pair, perhaps you can keep tabs on the major psychological handle and go long when reversal candlesticks materialize.
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.