We’re starting off with a simple trend play on AUD/USD! The pair is having trouble breaking below the .7500 major psychological handle, which is not surprising since it’s also right at a rising trend line retest and 100 SMA support on the 1-hour chart. On top of that, Stochastic also just left the oversold zone. The bulls can buy at current levels and place stops below the SMAs, while you could also wait for a break below the support levels if you’re one of them Aussie bears.
Someone holler at Huck because this retracement trade is too good to miss! GBP/USD is hitting the 1.4275 area, which is right smack at a 50% Fib retracemement and 100 SMA support on the 1-hour chart while Stochastic is chillin’ like a villain on the oversold region. What makes this setup even more interesting is that it’s also a previous resistance for the pair. You could wait for a couple more candlesticks to confirm a potential bounce for Cable. Of course, you could also start to build your positions and enter at different areas if you think that the pair could go down some more before bouncing back up.
Here’s one for range traders! AUD/JPY is lollygagging at the 85.75 levels, which is a range resistance on the 4-hour chart. Not only that, but a bearish divergence is also popping up to encourage the bulls! A short trade at current levels could get you a good reward-to-risk ratio, especially if you aim for the range support. Just make sure you leave enough room for volatility! Yen crosses like this one tend to go all over the place especially during major economic releases.
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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.