In the mood for a countertrend setup? Then this channel resistance play on AUD/USD’s 1-hour forex chart might interest you! AUD/USD appears to be moving inside an ascending trend channel, after having bounced off support around the .9275 level. The pair could be headed to the top of the channel, which is close to the .9400 major psychological handle, before heading back down. Stochastic is already moving down though, as Aussie bears are gaining control while the pair is testing the .9350 minor psychological mark. Better be ready in case AUD/USD sells off from here!
If you think the trend is your friend, then you might like this setup on NZD/USD’s 1-hour forex chart better. The pair has been moving in a steady downtrend, with a falling trend line connecting the recent price highs. However, price seems to be in the middle of a retracement and a potential test of the trend line. Using the Fib tool on the latest swing high and low indicates that the 61.8% Fibonacci retracement level lines up with the trend line and the .8350 minor psychological mark. If this area holds as resistance, NZD/USD might tumble down to its previous lows or even create new ones.
Range traders, unite! AUD/CAD is moving sideways on its 1-hour forex chart, as it bounced off support around 1.0115 and found resistance at 1.0215. For now, price is making its way back to the top of the range, which might continue to keep any gains in check. After all, stochastic is moving lower and indicating that sellers have enough energy to push the pair back down. In that case, AUD/CAD might make another test of the range support. If you’re planning to play this range, make sure you set your stops right in case a breakout takes place.
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.