Here’s a simple Fib play for ya! USD/CHF is lollygagging around the .9350 area, which is just above the 38.2% Fib and rising trend line support on the 1-hour chart. If you think that the Greenback is in for more gains, then you might want to think about placing orders around the possible support zones. Of course, you also gotta be careful where you place your stop losses!
Next up is a sweet trend line action on EUR/GBP. Not only has the rising trend line on the 4-hour chart been holding solid since late April, but this time there’s also a bullish divergence to support a possible long trade. Think you’re up for it? A stop just below the trend line could give you a good risk ratio if you’re planning on aiming for the .8700 area.
Last up for today is a setup that would do Happy Pip proud. NZD/USD is fast approaching the .8100 major psychological handle on the 4-hour chart and it looks like Stochastic is also agreeing to a possible downside move. If you think that the comdolls are headed south soon, then you better think fast and create a trading plan for this trade.
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.