Retracement alert! After finding support at the .7000 psychological area, AUD/USD is now testing a broken rising channel support. What makes this setup interesting is that the previous support is also lined up with the 100 and 200 SMA on the 1-hour chart. Think the Aussie is in for more losses? A short at current levels could be a good idea, especially if you think that the pair would make new lows. Of course, you could also wait for another move higher in case we’re looking at a fakeout.
GBP/AUD has been finding a hard time breaking above the 2.0500 area, but the higher lows are pointing to a possible ascending triangle. Be careful in trading this one though! If you’ve read the School of Pipsology, then you should know that not all ascending triangles break to the upside. Waiting for an actual breakout seems like the best trade setup in this case, though you can also sell around the 2.0500 resistance if you’re confident that the pair would eventually go back down.
I spy with my blue eyes a double bottom in the making! Guppy is marking its second bottom at the 166.00 area after hitting a high just below 175.00. Will the bulls push for an upside breakout or will the bears drag the pair to new lows? Stochastic is currently on the bulls’ side with an oversold signal, but you can also wait for a break below the current support if you’re one of them pound bears.
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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.