The 1.4780 handle that we were looking at on Monday ultimately failed to hold as support and our Fibonacci setup back then got invalidated. However, the ascending channel on EUR/AUD’s 1-hour chart is still intact, so let’s use that for today’s play. And as I always say, one of the more conservative ways to play an ascending channel is to look for opportunities to go long. And lucky us, since that’s where price is currently at. Even better, stochastic is still signalling oversold conditions, but the pair is already getting some buyers.
I’ve got a fresh channel setup for USD/CHF, as y’all can see on that there chart. The pair is currently gunning for the channel’s support area, and is just about to reach it too, so get ready to start looking for a chance to go long. And all the more so since stochastic has already reached oversold territory. However, the pair has repeatedly failed to break past resistance at the 0.9800 major psychological level. And given the momentum of the current downswing, there is therefore a chance that the pair would attempt a downside breakout instead. As such, it would be prudent to wait for support to actually form before going long. You may even want to consider a downside breakout scenario as well. In any case, just make sure to practice proper risk management, okay?
NZD/CAD is the gift that keeps on giving. As y’all can see, the pair bounced off from the channel’s resistance and dove lower for over 100 pips since we last saw it yesterday. By the way, congratulations to those who were gangsta enough to trade it. Anyhow, the pair is currently close to the channel support area. The 100 SMA seems to be acting as dynamic support, though, so there’s a chance that the pair may move higher without testing the channel’s support area. The only thing we have to worry about here is that stochastic is about to enter the overbought area.
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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.