EUR/USD is hesitating around the 1.0650 area after breaking below a rising channel earlier this week. This time around, the bears look like they’re following a falling trend line on the 1-hour time frame. Watch out for the 1.0600 major psychological handle, will you? The level has served as resistance and support in the past, and could very well be the immediate battle zone for forex bulls and bears. Shorting at current levels and aiming for the 1.0600 mark could still get you decent pips especially if you place your stops just above the falling trend line. If you’re one of them euro bulls though, then you could always wait for a retest of the 1.0600 area and trade a possible bounce higher.
Here’s one for trend warriors out there! AUD/USD is lollygagging around the .7625 mark, which is right smack at the 200 SMA support on the 1-hour time frame. Not only that, but it’s also near a rising channel support on the chart! The cherry on top of this potentially bullish setup is an oversold stochastic signal. Think the Aussie is in for more gains against the dollar? Buying at current levels could yield you a nice enough reward-to-risk ratio especially if you aim for the previous highs. Of course, you could also wait for a break of said support levels and trade a downside breakout if you’re one of them Aussie bears.
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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.