After finding resistance at the .6700 handle, NZD/USD looks like it might be falling back down to the .6600 area. This is a sweet spot if you’re one of them bulls because the major psychological handle is near the 38.2% to 50% Fibs as well as the 100 SMA support. Stops below the Fibs (or even the rising channel) is a good idea if you think that NZD/USD will be making new highs. Of course, you could also wait for better entry levels if you think that the pair still has room to go down.
Here’s another retracement trade for ya! AUD/JPY found trouble breaking above 90.50 and is now heading fast towards the 89.00 zone. The level could now serve as support after acting as resistance back in late November. Not only that, but it also lines up nicely with the 61.8% Fib while Stochastic is also sitting in the overbought territory. A long trade at the 89.00 area could make for a good trade if you’re expecting a quick retracement. If you think that the Aussie would see a deeper retracement though, then you could also wait for the pair to touch the rising trend line near the 100 and 200 SMA levels.
Range traders huddle up! EUR/GBP bears have so far been unsuccessful in driving the pair below the .7000 mark. But will it translate to another bounce from the major psychological level? Stop losses below the support zone could get you a good reward-to-risk ratio if you aim for the previous highs near .7400. Just watch out for the 200 SMA and mid-channel lines that could attract some more euro bears!
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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.