First up is a simple setup on AUD/JPY‘s daily chart. The pair seems to have encountered a strong support at the 78.00 psychological handle, and it looks like the pair is on its way to forming a double bottom. Not only that, the oversold Stochastic signal has already crossed! A target around the previous 82.50 resistance might be a good idea for a bullish swing trade, while the bears can also look out for a break of the 78.00 support.
Next on the list is another comdoll cross setup, this time on CAD/JPY’s 4-hour chart. The pair just hit a major resistance at the 78.50 area, and if the overbought Stochastic signal is any indication, it looks like the pair is about to head south. Still, before you sell the pair all the way to 77.00, you should probably take note of a possible support at the 77.50 handle near the rising trendline.
Last on the docket today is a descending channel action on NZD/USD‘s 4-hour chart. The pair is currently hanging around the mid-channel support near the .8250 level, but the bearish divergence and the overbought Stochastic signal are lining up for a trip down the charts. You could probably aim for the .8350 level if the mid-channel support holds, but you can also watch for the .8150 area if the support breaks.
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!