Back on February 6, we originally had an ascending channel for EUR/USD, which y’all can still see on that there chart. We were mainly looking to go long back then. But I also warned that resistance at 1.0790 seems rather strong, so much so that the pair was unable to quite reach the ascending channel’s resistance area. I therefore told y’all that ya may also wanna consider the possibility of a downside channel breakout.
And, well, the pair did stage a downside channel breakout. And if we take the most recent price action into consideration, we can see that the pair has been steadily trading lower while inside a fresh descending channel. Price has just bounced off the channel’s resistance area, so y’all better find an opportunity to go short and quick, since the pair will likely be gunning for 1.0530 next, if 1.0590 gives way. Just be ready to bail or switch trading bias should the pair suddenly snap higher to 1.0660, since that means that them bears are likely in control and shooting for 1.0790.
That there ascending channel for AUD/USD is real fresh. And presently, the pair is at the channel’s support area, so y’all better start lookin’ for opportunities to go long. However, resistance at 0.7700 seems to be rather strong, since the pair has failed to move past that time and time again. There’s therefore also a good chance that the pair may stage a downside breakout. And if that happens, just keep an eye on how the pair reacts to 0.7600, since the breakout ain’t confirmed until and unless the pair smashes past that. And if the pair clears that, then them bears would likely be gunning for the next area of interest at 0.7500. In any case, just make sure to practice proper risk management, a’ight?
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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.