Range traders huddle up! GBP/JPY is lollygagging at the 154.50 area, which lines up with a range support that hasn’t been broken since mid-February. Not only that, but stochastic is also chillin’ like a villain on the oversold territory. Is the pound about to see gains against the yen? Buying at the current levels could get you a good reward-to-risk ratio especially if you aim for the range resistance near 162.00. Of course, you could also wait for a downside breakout if you’re one of them pound bears.
Fib retracement alert! AUD/USD just bounced from the .7500 major psychological handle, which is right smack at the 50% Fib and previous support on the daily chart. What makes this setup more interesting is that stochastic has also just crossed to the overbought region. Thinking of shorting this one? Aiming for the previous lows could get you a decent trade especially if you place your stops just above the Fib levels. Just make sure you practice good risk management, aight?
Here’s one for the countertrend traders out there! GBP/NZD is back inside a falling channel that it had broken a couple of days ago. Right now it’s testing the 2.0350 support, which lines up with the pair’s 2016 lows. Think the pound is about to gain on the Kiwi anytime soon? Read up on trading against the trend before you place any long orders! Countertrend trading isn’t for everyone, 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.