Look who’s knockin’ on a resistance’s door! NZD/USD is at the .8300 major psychological area, which is near top of a falling channel on the 4-hour chart. And look at that sweet bearish divergence on the chart! You can wait for a couple more candlesticks if you’re not too crazy about shorting the Kiwi. Shorting at market could also work if you place your stop losses well above the channel resistance.
It’s decision time for the Loonie bulls and bears! Remember the range that we spotted at the start of the month? Well, it looks like CAD/JPY bulls were keen on testing the pattern’s resistance after all! The pair is currently at 97.00 without signs of an upside breakout…yet. Read up on trading ranges and breakouts if you don’t have any plans for this setup yet!
Heads up, central bank watchers! EUR/CHF is touching the 1.2200 area, which is just 200 pips from the SNB’s ceiling for the franc. Not only that, but the area has also held as a strong support since May this year! Although I would normally recommend tight stop losses for setups like these, keep in mind that we’re dealing with a cross currency pair. Keep them stop losses loose, brothas!
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.