First on the docket today is a possible support at USD/CAD‘s .9850 handle. After the parity play that I pointed out worked like a charm, it now looks like the pair is testing its major support level. And get this – Stochastic is in the oversold region! As you can see on the chart, the pair climbed by at least 100 pips on the last two times that Stochastic made the signal. If you are bullish on the pair you can place a tight stop below the previous low, but you can also wait for Stochastic to cross. But if you’re one of them bears, then you can also wait for a clean break below the support.
Somebody call Happy Pip because this comdoll setup is just too good to miss! On AUD/USD‘s daily chart a descending triangle seems to be in the works, as the pair is hanging around safely above the 1.0200 support. A tweezer bottom also popped up together with an oversold Stochastic signal. The bulls can put their stop losses below the tweezer bottom low and aim for the falling trendline resistance, while the bears can also wait for the pair to hit resistance and aim for the 1.0200 support.
Last on deck today is a resistance setup on EUR/GBP. After dropping below the .8600 handle a couple of days ago, the pair is moving strong towards the major resistance at the .8850 handle. Will the pair break above the level this time, or will resistance hold? You can aim for the resistance as a day trade, while the currency bears can wait for an overbought Stochastic signal once the pair reaches the handle.
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. Check him out, playas!