Let’s start off with a nice and simple range trade on GBP/AUD. The pair is knocking on the 1.8450 minor psychological level, which is right at a mid-range resistance on the 1-hour chart. Stochastic isn’t giving us any help right now, so you might want to wait for a couple more candlesticks if you’re thinking of shorting the pound. Of course, you could also wait for the pair to drop to the 1.8350 range support if you’re one of them pound bulls.
Looks like CAD/JPY is lollygagging around the 91.50 psychological area on the 4-hour chart! What makes this setup interesting is that the pair hasn’t broken below the support since February. Will the Loonie bulls stage another win at the level or will the bears take over and finally drag the pair lower? Stochastic hasn’t left the oversold region yet, so be careful in buying this yen cross if that’s your plan!
Last one up for today is a Fibonacci trade on Cable. The bears are having trouble breaking below the 1.6600 area. And why not? Aside from being a previous resistance, the psychological level is also lining up with a 38.2% Fibonacci retracement on the daily chart. Think this pair is headed higher? A stop below the rising trend line and Fib levels could still get you a good risk ratio if you believe that Cable will make new highs this year.
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.