NZD/USD is currently testing the .7100 handle, which is just below a mid-range resistance on the 1-hour chart. What makes this setup more interesting is that stochastic is chillin’ like a villain on the overbought territory. Is the Kiwi headed for a bounce lower? Or will the bulls push the pair all the way to the .7250 range resistance? If the 100 SMA crosses above the 100 SMA, then it’s likely that the Kiwi isn’t done gaining against the Greenback just yet. On the other hand, a return to the range support near the .7000 mark could hint that the bulls are losing steam and that the dollar is about to make pips rain against the comdoll.
Somebody holler at Huck because this setup is too good to miss! GBP/USD is having trouble breaking above the 1.3250 handle, which is right smack at a range resistance on the 1-hour chart. Not only that, but stochastic has also hit the overbought region. A short trade at current levels could get you a good reward-to-risk ratio especially if you think that Cable would revisit its range support. On the other hand, you could also wait for a break above the resistance levels and trade a breakout if you’re one of them pound bulls.
USD/CHF made a U-turn from the .9950 levels and is currently trading at the .9850 area. This time around a rising trend line is supporting the pair, along with the 100 SMA on the 4-hour chart. Think the dollar bulls will get their mojo back today? Or will the bears get enough momentum to inspire a break in the uptrend? Keep close tabs on this one, brothas!
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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.