EUR/AUD has recently been trending higher while bouncing up and down inside that there ascending channel. Presently, the pair is making its way lower towards the channel’s support area, which would likely be around the area of interest at 1.4030. Y’all therefore better get ready to start lookin’ for opportunities to go long. And all the more so, given that stochastic is already signaling oversold conditions and all that. In fact, there’s even a small chance that the pair may continue moving higher without ever reaching the channel’s support area.
Goin’ long before the pair reaches the channel’s support area is extra risky, though, so only the most gangsta traders should try doing that. For the more conservative traders out there, it’s probably better to wait for a test of the channel’s support area. Oh, just know that there’s also always a small chance for a downside channel breakout. A downside breakout needs to smash past 1.3940 before getting confirmed, though, so be ready to bail yo longs (or even switch bias) if the pair moves past 1.3940 on strong momentum.
Like EUR/AUD, EUR/GBP has also been steadily moving higher while trapped inside an ascending channel. Unlike EUR/AUD, however, EUR/GBP is already testing its ascending channel’s support area. Moreover, stochastic is also indicating overbought conditions and all that. Meanwhile, them moving averages are in uptrend mode, and the 100 SMA may even act as dynamic support. Y’all therefore better start lookin’ for an opportunity to go long on the pair. Do note, however, that a downside channel breakout is always a possibility. So just be ready to bail if the pair breaches the area of interest at 0.8690 on strong bearish momentum. In any case, just make sure to always 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.