AUD/USD has recently been respecting resistance at 0.7670 and support at 0.7510, thereby giving us a 160-pip trading range or rectangle to play with. Price is currently testing the rectangle’s resistance area, so you better start looking for trading opportunities if you’re planning to trade within the range, especially since stochastic is already indicating overbought conditions. Conservative forex traders may wanna wait for a clean break of that there rising trend line, though. Price already violated that trend line before, but price keeps getting pushed back above the trend line, which implies strong bullish interest.
As y’all can see on that there chart, the pair got rejected around the 0.7180 handle and has now pulled back to the former support area at 0.7320. There’s a chance that the broken support area may serve as resistance since it’s a price area with significant market interest. In addition, it happens to align rather nicely with the 61.8% Fibonacci retracement, not to mention the fact that stochastic has already reached overbought territory. Do be careful, however, since price has been closing above the moving averages, which hints at strong buying interest. But if 0.7320 does hold as resistance, then the sellers would likely be gunning for the area of interest at 0.7230, so keep an eye on how price reacts to that price level if or when it gets there.
EUR/AUD finally managed to push higher past resistance at the 1.4900 major psychological level. However, it encountered a lot of sellers when it reached the 1.5150 minor psychological level. As a result, the pair got pushed lower back to 1.4900. Stochastic is already indicating oversold conditions, so perhaps forex traders who are bullish on the pair may be enticed to start jumping in. However, there’s a chance that the pair may move even lower to test that rising trend line that you see there. In any case, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?
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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.