First up is a nice and simple Fib play! EUR/CAD is fast approaching the 1.5400 psychological area, which is right smack in the middle of a 50% Fib + 100 SMA + falling trend line combo. The cherry on top of this setup is that a bearish divergence is popping up on the 1-hour time frame. What do you think? Time to sell the euro? A short at the Fib levels could get you good trades if you think that the Loonie is about to see gains against the euro. Keep your stops loose though. Currency crosses like this one could be more volatile than the majors!
Not into shorting the euro? Here’s one for the bulls! EUR/CHF is lollygagging around the 1.1000 area, which is near a rising trend line, 61.8% Fib, and 100 SMA support. Not only that, but the level has also served as a pretty solid resistance in the past few days. A long at current levels could get you some pips if you’re one of them euro bulls. Read up on trading trends and Fibs if you haven’t done it yet!
Last one up for today is an opportunity for majors traders like Huck. USD/CHF is finding resistance just above the .9900 handle, which lines up with a 50% Fib and 100 SMA resistance. On top of that, a bearish divergence is also making itself known on the 4-hour chart. And let’s not forget that SMA crossover on the chart! Shorting at current levels could get you a good reward-to-risk ratio especially if you aim for previous lows. Just make sure you have a loose enough stop loss in your trading plans for possible end-of-week dollar volatility!
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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.