Bring out your SMAs and other trend-catching tools, because EUR/USD is in for a trendy ride! The 1-hour chart is showing a nice rising channel and it looks like the pair is about to test its support. Will the uptrend hold this week? A break below the trend line could drag the pair to the 1.0650 psychological level while a bounce higher could inspire a visit back to the 1.1000 area.
If you’re not into day trades, then this swing trade setup is for you! GBP/AUD just reached a 38.2% Fib level on the 4-hour chart, which is also near an area of interest back in early March and late January. Not only that, but Stochastic has also reached the overbought territory. You could wait for a couple more candlesticks to confirm a move lower if you’re not too sure about buying the Aussie against the pound. Of course, you could also place your sell orders at the higher Fib levels if you believe that the pair’s bulls still have some muscle in their hustle.
Now here’s a setup even a forex trading newbie can’t refuse! USD/JPY is trudging along a falling trend line on the 1-hour time frame. What makes the setup interesting is that it’s now near a psychological level while Stochastic is about to reach the overbought zone. Will this mean another slow but steady trip down the charts for the pair? A tight stop just above the trend line is a good idea if you’re betting on more dollar weakness against the yen. Keep your expectations in check though, because this downtrend doesn’t have as much momentum as we usually see on the pair.
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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.