Attention comdoll traders! AUD/USD is testing a support area! The Aussie had stopped its descent around the .8930 area, which had been a solid inflection point since the beginning of the month. Not only that, but Stochastic is also near the oversold territory. A stop loss just below the support zone could work out if you think that the Aussie is ready for another trip down the charts. Of course, you could also wait for a break below .8900 and trade a downside breakout!
This is one channel that I’m keeping my eyes on! You see, EUR/JPY is just about to bounce from a mid-channel support. What makes this setup sweeter is that there’s also a bullish divergence on the 1-hour chart. Are the forex bulls ready for a retest of the 141.50 area? Read up on trading divergences if you’re not familiar with them yet!
Can you guess where EUR/USD is at? If you answered “back at a trend line,” then you better give yourself a pat on the back! EUR/USD encountered support just above the 1.3650 area and it looks like it’s ready for another bounce. It also doesn’t hurt that Stochastic is at the oversold zone. You can place your stop losses just below the rising trend line if you’re bullish on the euro or you could also wait for a clean break above 1.3700 if you’re not too sure about buying the common currency.
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.