Aussie bears, be careful! AUD/USD is currently testing its yearly lows around the .8950 minor psychological support level while stochastic is making its way out of the oversold region. This suggests that a bounce might be in the cards, but who knows how long that will last? If selling pressure remains strong, the pair might still have a chance at making new lows. Didn’t RBA Governor Stevens say he wanted AUD/USD to trade around .8500?
Here’s another potential bounce for the Aussie. AUD/JPY has been trading inside a falling channel for the past few months and it seems that the bottom of the range might hold as support once again. I’m seeing a bullish divergence on the 4-hour time frame, as the pair has made higher lows while stochastic drew lower lows. A rally could take the pair back to the top of the channel around the 93.50 minor psychological resistance.
If you can’t get enough of trend channels, then here’s another one just for you! On its 1-hour time frame, GBP/AUD is moving inside an ascending channel and is getting ready to test the bottom around the .8100 handle. A bounce from that area could push the pair back to the top of the channel near the .8400 mark. Do you think the trend will be your friend?
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.