Let’s start off with a nice and simple trend trade on Cable. After getting rejected at the 1.4400 area, the pair is now headed for the 1.4300 major psychological (MaPs) level. Watch out for possible buying at the level especially since the MaPs also lines up with a previous resistance, 50% Fib retracement, and the 100 and 200 SMAs on the 1-hour chart. Those who are short on the pair could take some profits off at the level while the bulls could also wait for a bounce before placing buy orders.
Here’s another one for trend traders out there! USD/CHF is hitting the .9700 major psychological handle, which is right smack at a falling trend line and 200 SMA resistance on the 4-hour chart. What’s more, there’s also a bearish divergence on the chart. Think the dollar is about to lose some more to the franc? A short at current levels could make for a good trade idea while the bulls can also wait for an upside break before pushing the pedal to the metal.
Can’t get enough of retracements? Check this out! NZD/USD is about to reach the .6950 minor psychological level, which lines up with a previous resistance, Fib lines, and a mid-channel support on the 4-hour time frame. Stochastic hasn’t reached the oversold area though, so you’ll have some time to draft your trading plans before you put in your orders. Watch this one closely, fellas!
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.