EUR/USD is lollygagging inside a descending triangle on the 1-hour time frame. The pair has just bounced from the 1.0970 support and it looks like it’s heading for the 100 SMA resistance around the 1.1000 area. Before you put on your short trades though, you should remember that not all triangles like these break to the downside. Heck, stochastic is on the bulls’ side with an oversold signal. If you’re not too sure about the pair’s direction, then you can always wait for a breakout and just enter on a retest of the broken support or resistance level.
Here’s one for trend traders out there! EUR/GBP is having trouble breaking below the .8900 psychological handle, which is right around a 61.8% Fib retracement and previous resistance area on the 4-hour time frame. What’s more, it’s also just above the 100 SMA on the chart. The cherry on top of this sweet setup is an oversold stochastic signal. Think the euro is due for a bounce higher against the pound? Watch this one closely in case we start to see some bullish candlesticks!
Breakout traders huddle up! AUD/USD is about to test the .7700 major psychological handle, which is right smack at an ascending triangle resistance on the daily chart. Stochastic is about to hit the overbought territory though, so you might want to wait before you hit the buy button. A break above the triangle resistance could inspire a move to the area of interest around .8000. On the other hand, the .7700 could also hold and bounce back down to the 100 SMA support before seeing an upward momentum. Keep close tabs on this one, will ya?
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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.