Breakout alert! Now that EUR/USD has broken below its rising channel pattern, are we looking at a support-turned-resistance trade in the making? The pair looks like it’s headed for 1.1200, which is near the broken trend line, 38.2% Fib, and 200 SMA on the 1-hour chart. The pair hasn’t quite reached the level though, and Stochastic still has room to rise, so you still have time to strategize on a trading plan for this setup.
Here’s another one for majors traders! USD/CHF is having trouble breaking above the .9900 psychological handle, which is right smack at a previous support near the 38.2% Fib resistance and 200 SMA on the 4-hour time frame. Not only that, but Stochastic has also just left the overbought territory. Think the dollar is about to see losses against the franc? Shorting at current levels could give you a good reward-to-risk ratio, especially if you aim for the pair’s previous lows.
Last one up for today is another euro uptrend setup, this time against the Aussie. EUR/AUD is headed fast for the 1.5500 area near the rising channel support and 100 and 200 SMAs. What’s more, Stochastic is popping a big oversold signal. Will the euro soon see more gains against the comdoll? Read up on trading rising channels and trending charts 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.