Who’s up for a countertrend forex setup on EUR/GBP? The pair looks ready to test the top of the ascending trend channel on its 1-hour time frame near the .7950 minor psychological level. If this area holds as resistance, the pair could head back to the bottom of the channel near the .7900 major psychological mark. Stochastic is starting to move down from the overbought area, indicating that euro bears could take control of price action soon. If buyers stay in control, however, an upside break past the channel resistance might still be possible.
EUR/NZD still seems to be deciding whether to head north or turn back, as the pair is stalling at the mid-channel area of interest on its 1-hour forex time frame. Price has been moving inside a rising channel for quite some time now, with a break past the 1.6100 major psychological mark likely to indicate a continuation of the uptrend. Stochastic has just reached the overbought area but hasn’t crossed down yet, which suggests that there could be a bit of buying pressure left for another push higher. If sellers take over, a test of channel support at the 1.6000 handle could take place.
Here’s one for the long-term forex traders out there! On its daily time frame, it can be seen that AUD/JPY is moving inside a rising trend channel and is currently testing the mid-channel support zone. Stochastic is indicating oversold conditions, which means that Aussie bulls could charge sooner or later. If so, a strong bounce off the 97.50 minor psychological support could eventually take price back to the top of the channel around the 103.00 levels. If bears stay on top of their game, they could take AUD/JPY down to the bottom of the channel near 96.00.
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.