Remember that EUR/GBP range that we were watching? Well, the pair just broke to the upside! Right now it’s showing a bit of retracement, which could lead to a resistance-turned-support scenario for us. Be careful about buying this one though, as Stochastic is chillin’ like ice cream villain on the overbought region. For all we know we could be staring at a fakeout. You could buy at current levels if you’re confident that the pair is headed higher, but you could also wait for upside momentum if you’re not too sure that the euro would clock in more gains against the pound.
Here’s another range trade for ya! GBP/CAD is fast approaching the 2.0300 major psychological handle, which lines up nicely with a resistance level that’s been valid since late January. Not only that, but Stochastic is also popping an overbought signal. Think the pound is in for losses against the Loonie? A short at the resistance area could get you a good reward-to-risk ratio if you aim for the previous lows just above 1.9900. Just make sure you practice good risk management on this one. Currency crosses tend to be more volatile than the majors, yo!
Last one up for today is a pullback play on EUR/CHF. After breaking below the rising trend line, the pair had found support at the 1.0950 minor psychological level. The 1.0150 is a hot area to watch, and not only because it’s right at the broken trend line. See, the area is also near a 38.2% Fib and a potential 100 SMA bounce. You still have time to design your play around this setup, so make sure you keep your trading plans tight if we do see a bounce to the level.
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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.