Is this a range or what?! EUR/GBP has been finding support at the .7230 area since late March and it doesn’t look like the bulls have given up on the level just yet. The pair is consolidating at the support area though, so the bears might give a decent round of tug-o-pips over the next couple of hours. A stop just below the range is a good idea if you’re buying the euro, while the bears can wait for a range breakdown before pouncing.
Comdoll traders huddle up! NZD/JPY looks like it’s on a nice and steady rising channel on the 4-hour chart and it currently testing its support. Stochastic is currently on the bulls’ side as it barely left the oversold territory, but keep an eye out for possible exhaustion and breakdown of support in case the Kiwi bears and yen bulls bring their A-game this week.
Last but definitely not the least is this sweet uptrend on GBP/AUD’s 4-hour time frame. What’s interesting about it is that the rising trend line has been holding since November last year and, if it holds again this week, then the bulls are in a good position to buy today. Be careful though, as the line has been tested quite a few times and we never know when the bulls run out of steam. In any case, consider placing wide stops on this one, since currency crosses tend to be more volatile than other major pairs.
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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.