Let’s start with a nice and easy trend play! EUR/USD is rolling up on a rising trend line at the 1-hour chart right smack at the 1.3500 area. What’s more, stochastic is in the oversold zone! A stop just below the trend line could give you a sweet risk ratio if you think that the pair is about to make new highs.
If you’re one of them dollar bulls, then this setup is for you! AUD/USD bounced off the .9500 handle a couple of days ago and it looks like it still has room to fall. Of course, it also doesn’t hurt that there’s a tiny bearish divergence around the 38.2% Fib resistance. What do you think? Is the Aussie headed for its previous lows or are we just seeing a retracement?
If you’re not in the mood to trade the Greenback, then you might want to give this comdoll cross a shot. AUD/NZD encountered support near its previous lows and is quickly rising to a potential double bottom neckline at 1.1600. You can buy at market and aim for the neckline if you’re long on the Aussie, but you can also wait for a breakout above the level if you’re not too sure about the pair’s direction.
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.