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EUR/AUD: 4-hour

EUR/AUD 1-hour Forex Chart
EUR/AUD 4-hour Forex Chart

Lower highs and higher lows… Why, that’s a bearish divergence right there! EUR/AUD is currently testing the descending trend line on its 4-hour forex time frame and may be ready to head back south. If this setup meets the 9 Rules for Trading Divergences, the resistance around the 1.3900 major psychological level might hold and push the pair down to its previous lows near 1.3700. Stochastic seems to be crossing down anyway, hinting that sellers are about to take control of price action. Just make sure you set your stop above the 1.4000 handle if you’re planning on shorting!

EUR/JPY: 1-hour

EUR/JPY 1-hour Forex Chart
EUR/JPY 1-hour Forex Chart

Just like EUR/USD, this pair is also hinting at a potential short-term reversal. As you can see from the chart above, EUR/JPY just created a double bottom formation on its 1-hour forex time frame and is currently testing the neckline of the pattern. An upside breakout could send the pair higher by 200 pips, which is roughly the same height as the formation. If resistance around 128.50-129.00 holds, the pair might find its way back down to the previous lows at the 127.00 major psychological support. Stochastic is pointing up, suggesting that euro bulls are getting stronger.

EUR/NZD: 1-hour

EUR/NZD 1-hour Forex Chart
EUR/NZD 1-hour Forex Chart

Time for another break-and-retest setup, fellas! EUR/NZD has been climbing recently, as though making a huge correction from its recent drop. Using the handy-dandy Fib tool on the latest swing high and low on the 1-hour time frame reveals that the 50% retracement level lines up with the broken support near the 1.4600 major psychological mark. If this holds as resistance, price could make its way back down to the previous lows at the 1.4300 major psychological support. The 38.2% Fib seems to be keeping gains in check for now though and stochastic is already indicating a pickup in selling momentum.

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line

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.