First up is a nice and simple range trade on EUR/USD. The pair is lollygagging just below the 1.1200 psychological handle, which is right smack at a range resistance on the 1-hour time frame. What’s more, stochastic is also chillin’ in the overbought territory. Will this lead to trouble for the euro soon? Read up on trading ranges if you haven’t had much practice with trading them!
Breakout alert! NZD/USD just broke above a range that had been intact since early June. What makes this setup interesting is that the pair encountered resistance around the .7325 levels. Are we looking at a fakeout after all? Shorting at current prices is a good idea if you’re convinced that we’re seeing a fakeout. If you’re one of them Kiwi bulls though, then waiting for momentum (or at least a retest of the broken resistance) before entering a long trade is the safest play to make.
Here’s one for the trend-traders out there! USD/CAD is testing the 1.3050 area, which lines up with not only a rising channel support, but also the 200 SMA support on the 4-hour time frame. Not only that, but stochastic has also just left the oversold levels! Think the dollar is about to bounce against the Loonie? Buying at current levels with stops just below the channel could give you a good reward-to-risk ratio especially if you think that the Greenback would go back to its previous highs. Just make sure you manage your risk well, aight?
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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.