Looks like the bottom of the falling channel was too hot to handle for AUD/JPY! The pair just made a quick bounce off the channel support around the 91.00 major psychological level, putting AUD/JPY back on track to test the top of the channel near 92.50. Take note though that the pair might find resistance at the middle of the channel, as stochastic is already indicating overbought conditions.
Now here’s another potential range play on NZD/CHF’s 4-hour time frame. The pair has drawn higher lows and lower highs, creating a symmetrical triangle chart pattern. It is approaching the top of the triangle right around the .7500 major psychological resistance. With stochastic turning down from the overbought area, NZD/CHF’s rally might turn upon reaching the .7500 mark and make its way back to the bottom.
Last but not least is a potential reversal play on EUR/AUD that you might wanna keep your eyes on. The pair looks ready to form a head and shoulders pattern on its 4-hour time frame, suggesting a possible selloff soon. Using the Fib tool on the latest swing high and low shows that the 61.8% level lines up with the left shoulder of the formation, which means that EUR/AUD could encounter selling pressure if it tests that area.
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.