Sup? As y’all can see on that there chart, the downtrend on EUR/AUD has accelerated and all that. Despite the accelerated down move, the pair still encountered buyers, however. And in the process, that there descending channel has emerged. We are still expecting the pair to go lower. However, the pair is currently pulling back towards the channel’s resistance area. And as I always say, one of the more conservative ways to play a descending channel is to look for opportunities to go short. Y’all therefore better start looking for opportunities to go short on the pair. And all the more so, given that stochastic is already indicating overbought conditions and all that.
There’s always a small chance that them bulls would try an upside breakout, though. So just be ready to bail or switch directional bias if the pair blows right past 1.3850, since them bulls would likely be gunning for 1.3950 next. In any case, just make sure to always practice proper risk management, a’ight?
AUD/CAD has been steadily making its way higher while respecting that there rising trend line. It’s that diagonal, solid, black line right there. Anyhow, the pair has been having difficulty moving higher lately, because them bears appear to be well entrenched at the area of interest at 1.0080. In fact, them bears have actually launched a counter-attack recently. And you can see that for yo self by checking out that there small falling trend line. It’s the orange, dashed line, by the way. This means that bears and bulls are currently bum rushing each other. The bears currently have a slight advantage, but it’s only a matter of time before one side really gives way, so we might as well prepare for both a downside and an upside breakout scenario. Know what I’m sayin?
For an upside move, just keep an eye on a clear break of that mini falling trend line. The pair needs to clear 1.0080 with great momentum, though. Otherwise, there’s a chance that them bulls would get a second wind and push the pair back down. For a downside move, meanwhile, a clean break of the rising trend line is needed. However, the pair needs to smash past 0.9970 before the trend line break is confirmed. And even if the pair does that, y’all still can’t chillax until the pair clears 0.9860 as well, since that’s another area with very significant market interest.
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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.