I spy with my cool, shaded eyes a double bottom in the making! GBP/USD looks like it’s headed for the 1.2800 resistance after getting rejected at the 1.2100 handle for the second time in months. What makes the setup more interesting is that we could also be looking at a support-turned-resistance situation. With stochastic already in the overbought territory and the SMAs hovering near the 1.2800 handle, it won’t take much for the bears to attack around the “neckline.” Which way do you think the pair will go? Do you think we’ll see a double bottom breakout? Or will the bears defend the previous support area?
Here’s one for countertrend traders out there! AUD/CAD is having trouble getting past the 1.0100 psychological handle, which isn’t surprising since the level has served as resistance multiple times in 2016. Not only that, but it also roughly lines up with a rising channel resistance on the daily time frame. The cherry on top of this sweet setup is an overbought stochastic signal. Shorting at current levels is a good idea if you think that the Aussie will soon lose pips against the Loonie. Countertrend trading isn’t for everyone, though. Manage your trades wisely if you decide to take on this setup!
Forex Chart Settings:
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.