Can’t get enough of the Greenback? If you can’t, then here’s another setup for ya! USD/CAD is finding support at the 1.2650 level, which lines up with a 38.2% Fib on the 1-hour chart. Heck, there’s even a bullish divergence to support another move higher. To top it off, the 100 SMA has just crossed above the 200 SMA, indicating a possible bullish move. Will the Fib level hold for the pair or is the 1.2800 psychological level enough to ward off the currency bulls?
Here’s one for euro bears! EUR/GBP is riding a possible downtrend as it drops below .7250. Right now we’re seeing a bit of retracement that could reach the .7275 area. The level is interesting not only because it had served as a support and resistance level in March, but also because it’s right at a 50% Fib on the 1-hour time frame. A consolidation at the level could attract some bears, while a break above the trend line could inspire a visit back to the .7350 area.
Last up for today is a potential resistance-turned-support play on EUR/AUD. As you can see on the 1-hour chart, the pair is finding support at the 1.4100 psychological area, a level that marked the top of a rising channel from last month. Not only that, but it’s also sitting a 38.2% Fib on the 1-hour time frame. Another bounce from the level could push the pair to 1.4100, while a break below the support could entice the bears to drag it back to at least the mid-channel area near 1.4000.
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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.