That looks like a solid downtrend on EUR/AUD yo! The pair has been trading below a falling trend line since the start of the year and seems to be gearing up for another test of resistance. Using the Fib tool on the latest swing high and low on the 4-hour forex chart shows that the 61.8% level lines up with the trend line and a broken support area. At the same time, a regular bearish divergence seems to be forming, which means that the trend is likely to carry on.
Here’s an update on the EUR/CHF rising channel I showed y’all a few weeks back. Guess what? The pair is still stuck at the bottom of the channel until now! Stochastic is moving down from the overbought zone, indicating that buyers are taking a break and that sellers are in control. This could mean another test of the actual channel support or possibly a downside break. A bounce could take the pair up to the mid-channel area of interest around 1.2200 while a breakdown could be a sign that a longer-term selloff might happen.
Time for a reversal on EUR/NZD? A double bottom forex chart pattern has formed on the pair’s 1-hour time frame, indicating that a quick rally might be in the cards. The formation is roughly 100 pips in height, which means that the resulting climb could last by at least a hundred pips. Of course price has yet to break above the pattern’s neckline before heading higher and, with stochastic heading lower, that might not happen anytime soon. If the neckline resistance continues to hold, EUR/NZD might form another bottom just above the 1.5550 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.