First up is a nice and simple trend action on the 1-hour chart. EUR/CAD is hitting at a trend line support right now and it looks like stochastic is just about to hit the oversold area. You could wait for the pair to hit the 1.4000 area or for stochastic to pop up an oversold signal if you’re not too sure about this one. The risk ratio still looks decent even it you also jump in and place a wide stop below the trend line.
What a tossup! AUD/NZD looks ready to jump on the 4-hour chart but it looks like a former support and resistance area is currently cramping the bulls’ style. Will the bulls succeed in pushing this baby to the top of the rising channel or will the bears bring it back down to the rising trend line support?
Can’t get enough of the Greenback? USD/CHF might be lollygagging at the 38.2% Fib right now, but I gotta tell ya that the real action might happen at the .9200 psychological handle, which is right smack at the 50% Fib and a strong former support. You could jump in a short if you start to see a couple of reversal candles or you could also wait for the pair to hit the .9200 area if you think that the pair isn’t done popping up yet.
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.