Is USD/CHF about to reverse its trend? The pair recently broke above its falling trend line on the 1-hour chart and it looks like the line is about to become a support area. Not only that, but the level is also near the .9300 major psychological handle! A stop below the trend line and .9300 handle is a good idea if you think that the dollar bulls will flex their muscles today.
Here’s one for comdoll traders like Happy Pip! AUD/USD is testing the 1.0450 area, which is right smack in the mid-channel support on the 4-hour chart. Stochastic hasn’t reached the oversold region though, so you might want to hold your horses and wait for more buy signals. A tight stop above the mid-channel line could work if you aim for the top of the channel near 1.0550.
Last up for today is a sweet divergence play on Cable‘s daily chart. Not only is the pair hanging around at the 1.6000 major psychological level, but it’s also testing the falling trend line that has been intact since mid-September. A stop above the trend line would give a good reward-to-risk ratio if you’re gunning for the previous low at 1.5800.
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.