Which way could AUD/USD go? On its 1-hour forex chart, the pair seems to have completed the symmetrical triangle formation and might be looking to break out soon. Whichever direction it chooses, the resulting rally or selloff might last by around 200 pips, which is the same height as the chart pattern. Stochastic seems to be favoring a downside move, as the indicator is already indicating overbought conditions and suggesting that Aussie bears might take the upper hand. Just make sure you review our lesson on How to Trade Breakouts if you’re planning to trade this one!
If you think the trend is your friend, then you might like this potential uptrend play on EUR/CAD’s 4-hour forex chart. The pair seems to be in the middle of a pullback from its recent climb and might draw support from the Fibonacci retracement levels. In particular, the 61.8% Fib lines up with the rising trend line, 100 SMA, 1.3700 major psychological support and former resistance area. A bounce might take place soon since stochastic is already near the oversold region. If you’re a little more patient, you could wait for reversal candlesticks to form around the trend line support.
Is that a doji reversal candlestick I’m seeing on GBP/USD’s daily forex chart? Gotta take a peek at my Japanese Candlesticks Cheat Sheet to make sure! The pair is stalling at the area of interest around the 1.5500 major psychological level, which coincides with the 50% Fibonacci retracement level and the 200 SMA. If the next daily candle closes below the low of the doji, the pair could make its way back south towards the nearby support at the 1.5200 major psychological level. Stronger selling pressure might even lead to a move down to those lows at 1.4600. However, stochastic is still moving up, which means that pound bulls have a lot of energy left for more gains.
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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.