Remember that Fib play that we spotted a couple of days back? Well, it looks like the pair is back to retesting the 1.6700 major psychological handle! This time around a bearish divergence is adding its weight in attracting forex bears. Don’t be so quick to short this one though! The 100 SMA has just crossed above the 200 SMA, which usually signals the start of a bullish trend. Watch out for a break above the 100 SMA on the daily time frame that we were looking at for possible signs that the pound is about to rally against the Aussie after all.
Here’s an easy peasy range play for ya! EUR/USD is a hair’s breadth away from the 1.0550 handle, an area which has been holding as support since March 2015. What makes the setup more interesting is that stochastic is flashing an oversold signal. Think the euro will see a bounce at the level? Or will the bears have enough momentum to barrel through the major support? Read up on trading ranges like these if you haven’t tried it yet! But if you’re one of them euro bears, then you might want to prepare for a possible downside break from this neat range.
Breakout alert! After faking is out last week, AUD/USD is now showing signs that it has broken below an ascending triangle pattern on the daily time frame. Heck, it has broken through the rising trend line as well as the 100 and 200 SMAs! If you’re planning to short the Aussie for a long-term trade, then you might want to aim for the .7150 MiPs, a level that held as support despite being tested twice so far this year. Shorting at current levels is a good play for those who believe that the breakout has momentum, while an entry around the SMAs also sounds good if you think that the Aussie will retest the levels it has broken before heading much lower.
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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.