First up is a potential break-and-retest situation for GBP/USD. Cable has been soaring up the charts for the past few days, but it looks like the pair could need a quick pullback. On the 1-hour time frame, the 38.2% Fibonacci retracement level lines up with a former resistance level around the 1.6600 major psychological handle, which makes it a good support area. Stochastic is already climbing out of the oversold region though, as bulls seem excited to push the pair back up!
Bounce or break? EUR/AUD is on its way to test the bottom of the range on its 1-hour time frame while stochastic is almost in the oversold region. Take note that the range support is nearly in line with the 1.5000 major psychological level and that a bounce could take the pair back up to the top around 1.5275. If you’re planning to go long, make sure you set your stop loss below that latest spike to the 1.4980 area.
Here’s one for the swing traders out there! AUD/JPY seems to be forming a rising channel on its daily time frame, as the pair recently bounced off the 88.50 minor psychological support. It is finding a bit of resistance around the middle of the channel while stochastic is indicating overbought conditions, but a rally could take the pair back to the top of the channel around 95.50. A break above the previous week high could mean that more gains are in the cards so keep your eyes glued on this one.
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.