Talk about being indecisive! EUR/GBP is stalling around the middle of the falling channel on its 4-hour time frame, still trying to make up its mind whether to head back to the top around the .8300 major psychological level or test the bottom near the .8150 minor psychological handle. Stochastic isn’t offering any good clues at the moment, as the oscillator is also on middle ground. If you’re planning on playing this one, you might be better off waiting for an actual test of the channel support or resistance!
If quick day trades are your thing, then you might like this scalp setup on GBP/AUD’s 1-hour chart. The pair has been moving inside a 200-pip range, with support at 1.8425 and resistance roughly at 1.8625. GBP/AUD is already on its way to test the top of the range while stochastic is close to the overbought zone, which suggests that price could turn upon reaching resistance. Make sure you set your stops above those recent spikes, as this pair could be a volatile one!
Last but not least is a forex chart for the long-term traders out there! AUD/CAD is currently testing the major support turned resistance level, as seen on the daily time frame. To make things better, that inflection point is right smack at parity! Stochastic is starting to make its way out of the overbought region, hinting that Aussie bears could pounce soon. Watch out for a test of its former lows if this pair starts to sell off again!
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.