First up is a potential double top on EUR/AUD’s 1-hour time frame. The pair is having trouble breaking above the 1.4750 minor psychological handle, which lines up with this week’s intraweek highs. Not only that, but stochastic has also just left the overbought territory. A bounce from the weekly resistance could lead to the retest of the 1.4650 neckline. Be careful of the SMA crossover though! An upside breakout could also take the pair all the way to the 1.4900 levels.
I spy with my cool, bedroom eyes a descending triangle in the making! EUR/CAD is still stuck in a descending triangle on the 4-hour time frame. What makes this setup interesting is that it’s now testing the 100 SMA, which is just below the falling trend line resistance. Is the euro about to see losses against the Loonie? Read up on trading triangle breakouts like this one if you haven’t done it yet!
Retracement alert! GBP/NZD is about to hit the 1.9400 MaPs, which lines up with not only the 38.2% Fib on the daily time frame, but also the channel support that was broken in late June. What’s more, stochastic is about to hit the overbought region. A short trade around the Fib areas could yield you a good reward-to-risk ratio especially if you aim for the previous lows. Of course, you could also wait for a bounce to the 100 SMA and even a retest of the channel resistance if you think that the pound isn’t done gaining on the Kiwi just 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.