Somebody holler at Happy Pip because this trend play is too good to miss! USD/CAD is having trouble breaking above the 1.3800 major psychological handle, which is right smack at a falling channel resistance and 200 SMA line on the 1-hour time frame. Not only that, but Stochastic is also almost overbought! A short at current levels could give you a good reward-to-risk ratio, especially if you aim for the channel bottom. Of course, you could always wait for a break above the pattern if you’re not into buying the Loonie these days!
Here’s another comdoll setup for ya! NZD/USD is lollygagging just below the .6650 handle, which is understandable as it lines up nicely with a previous area of interest, 61.8% Fib, and a rising trend line support. And let’s not forget a bullish divergence slowly making itself known in the 1-hour chart! You could buy at current levels if you believe that the Kiwi is about to gain against the Greenback, but you can also wait for an actual trend line retest if you think that NZD/USD has some more room to fall before popping back up.
Last one up for today is an easy peasy support play on EUR/CHF. The pair’s bulls are successfully defending the 1.0925 handle, a level that had been a pretty solid support and resistance areas in the past. Stochastic is also on the bulls’ side today with an oversold signal on the 4-hour time frame. Think the euro is about to bounce up against the franc? Remember to make room for volatility if you’re planning on trading this one! Currency crosses tend to be more volatile than the major pairs and usually needs wider stop losses.
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.