First up is a nice and simple setup for the trend warriors out there. EUR/USD is having trouble breaking below the 1.1200 major psychological handle, which coincidentally lines up with a rising trend line support. Not only that, but stochastic is also flashing an oversold signal on the 1-hour time frame. A long trade at current levels could make for a good trade if you believe that the euro would head to its previous highs against the Greenback. On the other hand, trade orders below the trend line could also work if you’re betting on the euro breaking even lower against the dollar.
Breakout alert! EUR/GBP is consolidating in what looks like a bullish pennant on the 1-hour chart. If you’ve read the School of Pipsology, then you’ll know that these setups usually signal further upside movement. Think the euro will soon gain more pips on the pound? Time to put your breakout strategies to the test!
Remember that retracement play that we talked about last week? Well, it looks like GBP/AUD has finally landed on the potential support area! The pair is lollygagging at the 1.9225 levels, which is right around a 61.8% Fib and a broken falling trend line. A bounce at the area could lead to a move to the 2.0000 levels while a downside break could drag the pair all the way to its previous lows at 1.8350. There’s lots of pips at stake, folks, so make sure you plan your strategies well and use good risk management!
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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. BabyPips.com receives a small credit from any purchases through the Amazon links above to help support the free content and features of our site.