Up first for today’s rectangle + euro double special is EUR/AUD. And as y’all can see on that there chart, EUR/AUD has been respecting resistance at the 1.4930 handle and support at the 1.4700 major psychological level for the past few days, giving us a 230-pip trading range or rectangle to play with. Price is currently at the halfway point already, but price seems to be getting some buyers and stochastic is already pointing up and moving away from the oversold area, so forex traders who are bullish on the pair may be attempting an upside rectangle breakout.
Next, EUR/GBP has been trading sideways for a while now, while bouncing up and down between resistance and support at the 0.7900 and 7700 major psychological levels respectively. The pair recently attempted an upside rectangle breakout, but price got quickly pummeled by sellers and is now back inside the rectangle and making its way back down again. However, do note that the moving averages are clearly in uptrend mode already and stochastic is indicating oversold conditions to boot, so bulls may be enticed to attempt another upside rectangle breakout. As usual, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
Finally, EUR/CAD has been bouncing around a trading range or rectangle for the past few days, with resistance at the 1.4830 handle and support around the 1.4630 handle. And as y’all can see, price just recently bounced off the top of the trading range and is making its way down. Forex traders may feel inclined to ride the downward movement, but let me just warn y’all that the stochastic oscillator has just left the oversold area, so there’s a good chance that the pair would pause or even retest the top of the trading range. Also, the moving averages are are actually oscillating, so the overall trend is still not clear, but they did recently cross-over into uptrend mode, so there’s even a small chance of an upside rectangle breakout.
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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.