EUR/USD is about to hit the 1.1150 psychological level, which is right smack at a falling channel resistance on the chart. What makes the level more interesting is that it also lines up with the 100 and 200 SMA on the daily time frame, all while stochastic is flashing an overbought signal. Think the euro is about to face losses against the Greenback? Shorting at current levels could get you a sweet reward-to-risk ratio especially if you aim for October’s lows. Just make sure you practice good risk management, aight?
Breakout traders huddle up! AUD/USD is currently testing the .7700 major psychological handle, which lines up with an ascending triangle resistance on the daily time frame. A break above the level could lead to a move to the .8000 area especially if it gains momentum. Not all ascending triangles break to the upside though, so you should also watch out for a break below the triangle and 100 SMA support.
Here’s one for retracement playas out there. GBP/USD has just bounced from the 1.2150 levels, and is popping up strong bullish candlesticks on the daily chart. Will the Fib retracement levels be enough to stop the bulls’ momentum? Or will the pair go all the way up to the 1.2850 broken support before it sees any resistance? Stochastic is almost in the overbought territory, so you might want to watch this one closely for bearish candlesticks that signal another bearish leg for Cable.
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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.