First up, here’s a quick update on the GBP/AUD range I shared with y’all a few days back. It looks like the pair is finally ready to make a run for the top of the range around the 1.8300 major psychological level, as it bounced a couple of times off the mid-range area of interest. Stochastic is still climbing, which means that there’s enough buying pressure to sustain a potential rally to the range resistance. If you’re a pound bear though, you could wait for a test of 1.8300 to short.
If you’re a hardcore pound bull though, you might wanna watch this potential rising trend line bounce on GBP/CHF’s 4-hour forex chart closely. Stochastic is on its way down, which means that the pair could move closer to the trend line support sooner or later. The 1.5150 minor psychological handle lines up with the trend line and could act as a floor for the pair’s selloff, with a bounce likely to last until the previous highs near the 1.5300 mark. Keep your eyes peeled for any reversal candlesticks and make sure you set your stop below the trend line if you’re planning to go long!
Be careful, euro bears! A double bottom pattern has formed on EUR/AUD’s 1-hour forex time frame, indicating that the recent selloff might turn. Price is already testing the pattern’s neckline and an upside break could mean a rally of as much as 200 pips, which is the same height as the chart formation. Stochastic is already in the overbought zone though, suggesting that bears could jump in anytime soon. Make sure that the breakout ain’t a fakeout if you’re thinking of buying.
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.