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Whattup, forex geeks!

Whether you like trading the majors or you’re more into comdolls, you can party with us today as we play around with EUR/USD and AUD/USD.

Check them out, yo!

EUR/USD: 1-hour

EUR/USD 1-hour Forex Chart
EUR/USD 1-hour Forex Chart

Resistance alert! EUR/USD just hit the 1.1800 major psychological handle, which is right smack at a range resistance that hasn’t been (firmly) broken since the start of the month.

I’m not seeing overbought signals from Stochastic this time around, but those long wicks in the last candlesticks are telling me that the bears are still in the mood to flex.

Will 1.1800 hold for another day today? Shorting at the first signs of bearish pressure would give the best reward-to-risk ratio in this case especially if you’re betting on the euro dropping back to its 1.1700 range support.

Feel like the euro is about to break higher instead? You can wait for a clear break above the 1.1800 zone or even October’s highs near 1.1820 and then place your stops just under the broken support.

Whichever bias you end up trading, make sure to stick to your trading plan like white on rice!

AUD/USD: Daily

AUD/USD Daily Forex Chart
AUD/USD Daily Forex Chart

AUD/USD is about 20 pips away from retesting an area of interest that has been holding as support and resistance for most of the year.

As you can see, the level is just under the 100 SMA while Stochastic is signaling the Aussie’s oversold conditions.

I’m not seeing any bullish candlesticks, though, so y’all might want to wait for some confirmation if you’re betting on the Aussie poppin’ back up to its September highs.

If you’d rather short the comdoll against the dollar, then you’ll want to at least do it after AUD/USD breaks below the .7025 area that marks September’s lows. A strong enough breakout could drag the Aussie to the .6915 or .6830 previous areas of interest.

Good luck and good trading, errbody!

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line