Let’s start with a lil’ something for the range traders! AUD/USD has just been rejected at the .7525 handle, which is right smack at a range support on the 1-hour time frame. What makes this setup more interesting is that the stochastic is also chillin’ like a villain on oversold territory. Think the Aussie is due for a bounce? A long trade at current levels could give you a good reward-to-risk ratio especially if you aim for the range resistance. Read up on trading ranges if you haven’t done it yet!
Here’s one for the trend warriors out there! After bouncing from the 1.4775 zone, EUR/AUD looks set to retest the channel resistance levels. You could place a small position and ride a bullish momentum if you’re one of them Aussie bears. Of course, you could also wait for a retest of the resistance, which is also near the 61.8% Fib and 100 SMA if you think that the euro isn’t done falling against the Aussie just yet.
Feel like countertrend trading this week? GBP/AUD is lollygagging just above the 1.7950 levels, which lines up nicely with a falling channel support on the daily time frame. A long trade at current levels could make for a good reward-to-risk ratio especially if you aim for the channel resistance. Don’t bet the farm on this though! You might want to wait for a couple of bullish candlesticks to confirm a bullish move before you bet against the trend.
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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.