Dollar bears unite! USD/JPY is trading near the 109.50 handle, which is right smack at a 38.2% Fib and 200 SMA resistance on the 1-hour time frame. Not only that, but stochastic is also hanging around the overbought territory. A short trade at current levels could get you a good reward-to-risk ratio if you’re one of them bears, but the bulls could also wait for a break above the resistance areas for potential trade opportunities.
Here’s one for range traders out there! AUD/USD just left the .7680 area, a resistance line that hasn’t been broken since mid-March. The pair is almost at the mid-range level though, so the R:R on this one is only attractive for those who are aiming for the range support. Think the Aussie is about to lose more pips on the dollar? Read up on trading ranges if you haven’t done it yet!
Last up for today is a nice and simple trend play with AUD/CAD just about to reject the .9800 major psychological handle. Whats makes this setup more interesting is that the level also lines up with a falling trend line and 100 SMA right around the time when there’s also a bearish divergence on the 1-hour time frame. Shorting at current levels is looking good for this chart. Just remember to keep your stop losses wide! Currency crosses like this one tend to be more volatile than the majors after all.
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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.