Who’s up for a countertrend trade? Like many other forex pairs, AUD/USD fell victim to weekend gaps. But hey, it’s now touching a falling channel support! What’s more, with price showing a lower low and Stochastic printing a higher low, we might be looking at a hidden bullish divergence. You can place a tight stop below the channel if you’re thinking of taking this countertrend trade but you can also wait for the pair to reach its mid-channel levels if you’re one of them Aussie bears.
Where to, USD/JPY? After breaking below an ascending triangle pattern on the 4-hour chart, the Greenback looks determined to drop all the way to the 100.50 support. As you can see, the area has served as a solid inflection point since mid-2013. Watch out for this one, will ya? We might see an epic tug-o-pip battle around this major psychological area!
What’s trending and hasn’t broken below its 100 SMA since May 2013? If you answered EUR/JPY then you’ve seen the chart above! I’m calling attention to this pair because it’s back to retesting the trend indicator. Do you think it’s due for another bounce or have the euro bulls exhausted their trading muscles? Keep close tabs on this one, homies.
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.