Remember that AUD/USD channel that we spotted earlier this week? Well, it looks like it played out pretty well! Right now the pair is back to its channel support, which is also just above the .7750 minor psychological handle and the 200 SMA on the 1-hour chart. What’s more, stochastic is also on the overbought territory. A stop below the channel and the SMAs could make for a good trade if you’re one of them Aussie bulls. Of course, you could also wait for a downside break if you think that the Aussie bears will gain momentum for a downtrend.
Here’s another trend play for ya! USD/CAD is having trouble breaking above the 1.2750 mark, which is also a previous support for the pair. In addition, it lines up with a mid-channel and 100 SMA resistance on the 1-hour time frame. Last but not the least, stochastic is hanging out at the overbought region. Think the dollar is about to see more losses against the Loonie? Keep close tabs on this one!
Last up for today is a nice and simple support-and-resistance play. GBP/AUD is consolidating at the 1.8500 major psychological handle, which is where the 200 SMA is on the 1-hour chart. What’s more, stochastic is on the bears’ side with an overbought signal. A short trade at current levels and a stop above the 1.8500 mark could give you a good reward-to-risk ratio especially if you aim for the previous lows. Make sure you leave enough room for volatility though, as currency crosses tend to be more volatile than the major pairs.
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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.