I’m seeing the resistance and no, it has nothing to do with fighting stormtroopers. USD/CAD is currently finding resistance just below the 1.4400 psychological handle, which lines up with a channel top. What’s more, Stochastic is in the overbought territory. By the way, virtual high five to those who took yesterday’s retracement trade on this one! A bounce from the level opens up a possible move all the way to the 1.4250 area while a break higher could provide a break-and-retest scenario for the dollar bulls. Where do you think the pair will go? In any case, make sure you keep your trading plan handy if you’re taking on USD/CAD. You never know when you’re gonna need to pull rabbits from your trading hat!
USD/CHF is showing a possible retracement trade with its move to the 1.0050 minor psychological level. What makes this setup interesting is that Stochastic is almost in the oversold region. A long at the mid-channel line could get you some pips if you place your stops below the rising trend line and aim for the 1.0150 zone. Of course, you could also wait for a deeper retracement – maybe around parity? – if you think that the dollar isn’t done falling against the franc just yet.
Breakout alert! For a third time in a row this week, AUD/USD is testing the .6930 area on the 1-hour time frame. Will the third time be the charm for the bears? The bulls have a fighting chance with Stochastic on their side, but I advise against buying at current prices right now. It might be better to wait for consolidation or a couple of candlesticks that hint at a bounce before you trade a range play. If you’re one of them Aussie bears though, then you could also wait for a break below the closely-watched support before you pull the trigger. Make sure you’ve read about trading breakouts if you haven’t done it yet!
Forex Chart Settings:
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.