If y’all can still recall, we wuz lookin’ to short AUD/USD back on Monday when price was chillin’ at 0.7350 and after the pair broke out of that there descending triangle that you see there. However, I also told y’all that if the pair smashes past 0.7380, then all short bets are off and that y’all may wanna switch directional bias. My reasoning back then wuz ‘coz if that happens, then that means that them bulls are likely gunning for 0.7490. Well, check out that chart, dawg! As y’all can see, bulls did gun for 0.7490, so give yo self a pat on the back if you wuz able to ride the up swing.
Anyhow, since the pair has reached 0.7490 and the price looks to be hesitating already, why not start looking looking for opportunities to go short? Know what I’m sayin? And all the more so, given that stochastic is already indicating overbought conditions and all that. If 0.7490 holds as resistance, then the bears will likely be gunning for 0.7380. However, y’all should just know that there’s a risk that the pair may move higher all the way to 0.7570, given the momentum of the recent upswing.
That there descending channel is real fresh, homie. And as y’all can see, the pair also happens to be testing that there channel’s support area. There’s therefore a chance that bulls will start jumping in. In addition, the channel’s support area sits right smack on the 114.00 major psychological level and stochastic be, like, indicating oversold conditions already. So that’s two extra technical arguments in favor of a bullish move sooner or later. If 114.00 holds, then the bulls will likely be shooting for the 116.00 major psychological level, which is 200 pips away. However, there’s also a small chance that the pair may continue moving lower. In that case, then bears will likely be gunning for the 112.20 handle. Okay, that’s all for now. Peace! Oh, by the way, don’t forget to practice proper risk management, aight?
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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.