First up is a nice and simple trend line play on USD/CHF. The pair is lollygagging at the trend line support, which is right smack at the .9700 major psychological handle (MaPs) and the 200 SMA on the 1-hour chart. A long trade at current levels could still get you a good trade if you place your stops just below the trend line and aim for the previous highs. Of course, you could also wait for a downside breakout if you’re one of them dollar bears.
Here’s one for the retracement hunters! GBP/USD is approaching the 1.4500 area, which lines up nicely with the Fibonacci retracements, 100 SMA, and the broken channel on the 1-hour time frame. The bulls can afford to wait for a the pair to drop by a few more pips before jumping on Cable’s uptrend. But if you believe that the pound has reached a peak at the 1.4625 area, then you can also short at current levels and place your stops above the previous highs. In any case, make sure you put your trading plan on your journal!
Remember that retracement that we looked at yesterday? Well, it looks like the bears had put more muscle into dragging the pair lower. Right now AUD/USD is at the .7600 major psychological handle, which also lines up with a rising trend line that has been holding since the start of March. Not only that, but stochastic is also sporting a possible bullish divergence in the making. A long trade at current levels could get you a good reward-to-risk ratio if you think that the Aussie is about to gain some pips on the Greenback.
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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.