Who’s up for a range play? GBP/USD just bounced off the 1.6000 psychological handle and it looks like it’s headed for the 80-pip range’s support. The overbought stochastic signal is currently making it easier for the bears to pounce but watch out in case there’s a buying demand around the 1.5960 area!
If breakout trades are your game, then this setup is for you! GBP/CAD has encountered resistance at a falling trend line on the 4-hour chart. It could test the support at the 1.6500 major psychological handle, which looks a lot like a descending triangle support. Think this pair is headed lower? Read up on trading breakouts if you’re not sure on how to proceed on this one!
The plot thickens with AUD/USD as it approaches the .9700 psychological level, which is right around a major support and 50% Fib resistance on the weekly chart. Not only that, but stochastic has landed on the overbought territory! If you’re trading this setup, then don’t forget that you’re trading a comdoll on a weekly time frame. Make sure that you leave enough room for volatility in your stop losses!
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.