AUD/USD has been grinding sideways and after finding strong support at .7500, the market is back up to the very strong area of interest around .7750. Lined up with the moving averages and the Fibonacci retracement area, and this could be a powerful magnet for sell orders. If it holds and reverses, .7500 should be easily reachable, and a target for a breakout with the right catalyst.
Last week, I pointed out a rising trendline break on AUD/CAD and now it’s finally bounced back to previous support levels, much like AUD/USD. With the stochastic showing potentially over bought conditions as the pair retests broken support, moving averages and the Fibs, that stalling could turn into a full reversal back to the downside. Again, .9200 is a major support area target that hasn’t been seen since August 2013.
Last but not least, we’ve got GBP/AUD showing signs of a consolidation market in the higher timeframes. With the pair forming a symmetrical triangle, the next move could be in either direction and it could be a strong breakout with the right catalyst. For those with a directional bias, the long side may be the more likely scenario with support around the major psychological level of 1.9000 lining up with the rising trendline and moving average. A break above the falling “highs” should also attract a good amount of buy orders. On the downside, again 1.9000 might be tough to crack, but if it does, watch out below!
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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.