Remember that EUR/AUD descending triangle forex chart pattern I showed y’all yesterday? Well, the pair already decided to make a break for it, as price surged past the triangle resistance at 1.4100 and climbed to the 1.4300 mark. Note that the chart formation is roughly 300 pips tall, which suggests that the breakout rally might last by the same amount. So if you’re bullish on this one, you might still have at least a hundred pips to grab if you try to catch the recent climb. If you’re more patient with your entries, you could wait for a pullback to the broken triangle resistance, which might take place soon since stochastic is already indicating overbought conditions.
Check out this area of interest holdin’ like a boss on EUR/USD’s 4-hour forex chart! The pair has been droppin’ it like it’s hot for the past few days but it looks like price could find support at the 61.8% Fibonacci retracement level. This lines up with the broken resistance around the 1.0900 to 1.1000 levels, which might keep further losses in check. Stochastic is moving up, confirming that buyers are in control of price action for now and that a climb to the nearby resistance at 1.1100 might take place. Heck, if more euro bulls come charging, the pair might even be able to head back to its previous highs close to the 1.1500 major psychological mark!
Careful, Loonie bulls! CAD/JPY is closing in on the top of its range on the 4-hour forex chart, as price is just a few pips away from the resistance at the 100.00 handle. Buyers might be tempted to book profits at this major psychological mark, especially since stochastic is already near the overbought region. In that case, CAD/JPY might retreat from its recent climb and head back to the bottom of the range near the 98.50 minor psychological support level. Of course a breakout might still be possible if buyers keep pushing the pair up so make sure you review our lesson on How to Trade Breakouts if you’re hoping to catch one!
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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.