Let’s start with something that Aussie bulls may like, namely that there ascending channel for EUR/AUD. An ascending channel for EUR/AUD normally means that the AUD is actually trending lower. But in this case, the pair seems to be having difficulty breaking past the well-respected resistance area at 1.4770, which is a price area of interest, even on the higher time frames. And the fact that stochastic is already signalling overbought condition also reinforces our bearish bias.
If you’re more bearish on the Aussie, then feast your eyes on that there break-and-retest setup. Price is currently testing the broken support at 1.0620 and bullish momentum seems to have evaporated. And looking at our technical indicators, the moving averages have just recently crossed-over into uptrend mode. Meanwhile, stochastic has already reached overbought territory. The one main risk we have here is that there falling trend line. True, it reinforces our bearish bias on the pair, but there’s also a chance that the pair could move higher and then bounce off the trend line.
If you’re not particularly bearish or bullish on the Aussie, then check out that there ascending channel for AUD/JPY. Price is currently milling about at the channel’s resistance area which lines up with the 79.00 major psychological level, and therefore favors a downside move. In addition, the moving averages are in downtrend mode, with the 100 SMA seemingly acting as dynamic resistance. However, the way price is really sticking to the channel’s resistance area is making me think that bullish interest may be strong, so there’s also a chance for an upside breakout. In any case, just make sure to practice proper risk management, alright?
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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.