EUR/AUD is lollygagging just below the 1.3800 major psychological handle, which isn’t surprising since it’s also near a falling trend line resistance AND the 100 and 200 SMAs on the 1-hour time frame. What’s more, stochastic has also just left the overbought territory! Before you place your place your shorts though, you should also take note that we’re not seeing much bearish momentum despite the technical setup that we spotted. Heck, price is currently trading ABOVE the SMAs right now! Is this a sign that the euro is ready to take off against the Aussie? Watch this one closely, homies!
Is USD/JPY ready for another leg higher? The pair is having a hard time breaking below the 112.00 major psychological support, which is also near the 38.2% and 100 SMA on the daily chart. What makes the possible bounce more interesting is that a bounce from the 112.00 zone could lead to a tug-o-pips around the 116.50 area. As you can see, a move to the level would mean a retest of a falling trend line that hasn’t been broken since early 2015. Yowza! Dollar bulls could buy at current levels and aim for the trend line resistance, while the bears could wait for a possible retest of the long-term trend line to get sweet reward-to-risk ratios.
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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.