Nothin’ like a clean setup to start your week! After bouncing off resistance at around 1.0820, AUD/USD is now back in the middle of its one-month range. That only means one thing: the range’s established support and resistance levels are back in play! If you think the pair will remain range-bound, look to sell at around 1.0820 and buy at around 1.0650. Just remember to wait for confirmation from Japanese candlesticks or Stochastic so you don’t get burned by a breakout!
Support level approaching? Check! Oversold Stochastic? Check! Bullish divergence forming? Check! It seems like the stars are lining up for a long NZD/USD position! But I would keep my finger off the trigger if I were you, homie! NZD/USD still has a few pips to run before it hits the support area at .8270, so it may be best to wait a while before committing to a position.
Last but not least is this update on the USD/CAD trade setup that I posted a few days ago. The pair has been crawling steadily up the charts, but it might encounter resistance pretty soon as it’s already less than 40 pips away from .9930. Not only was this level once a solid support level, but it’s also right smack in the middle of Fib territory! This area might be a good place to sell if you’re looking to enter on a retracement, but you may want to wait for Stochastic to signal overbought conditions before you short this sucker.
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.