We’re about to see a resistance and this time it has nothing to do with the force. GBP/AUD is consolidating just below the 1.8850 minor psychological handle, which is near a falling channel resistance on the 1-hour chart. What’s more, the pair is also touching the 200 SMA just as stochastic is popping up an overbought signal. Think it’s time for GBP/AUD to go back down?
USD/JPY is fast approaching the 114.25 area, which has served as resistance for the pair since early February. Not only that, but stochastic is also on the overbought territory. A short at the range resistance area could get you a good reward-to-risk ratio especially if you aim for the range support and place your stops above the resistance area. Just make sure you leave enough room for volatility when placing your stop losses!
I spy with my blue, bedroom eyes a potential breakout in the making! AUD/JPY is forming what looks like a bullish pennant on the 4-hour chart after rising from the 79.00 levels. In addition, it’s also currently being supported by the 100 SMA. If you’ve read the School of Pipsology, then you’ll know that bullish pennants usually break to the upside. Make detailed plans on how you’re trading this one especially if you haven’t traded breakout setups yet!
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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.