First one up for today is a channel bounce in the making. AUD/USD is having trouble breaking above the .7800 major psychological area, which is around a channel resistance on the 1-hour time frame. What’s more, there’s also a bearish divergence on the chart. A short trade at current levels could make for a good trade idea for the Aussie bears. Just make sure you take extra caution when trading them! Not all traders can hack a countertrend trade, after all.
Here’s another one for trend players out there! EUR/USD is lollygagging at the 1.1350 area, which is near a mid-channel resistance and 100 SMA on the 1-hour time frame. Not only that, but stochastic is also in the overbought territory. Think the euro bears will successfully defend the level? Or will the bulls succeed in pushing the pair back to its previous highs?
Long-term traders huddle up! AUD/CHF is currently testing the .7500 major psychological handle, which has been serving as resistance since April last year. This time around stochastic is also on the bears’ side with an overbought signal. Will all these point to more Aussie weakness against the franc? Whip out your trading plans and start marking your strategies for this setup!
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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.