If you’re a swing trader, then you might dig this setup on NZD/USD’s daily time frame. The pair seems to be stalling below the .8100 major psychological handle at the moment as a couple of reversal candlesticks formed right on the support-turned-resistance level. On top of that, stochastic is making lower highs while price made higher highs, which means that there’s also a bearish divergence in that area. If NZD/USD starts heading south, it could dip to the nearby support level around the .7900 handle. If it breaks to the upside though, the next resistance level is located near .8300.
Now here’s a potential trade setup for the range-lovers out there! AUD/JPY has been moving sideways between resistance around 82.50 and support at 79.50 for quite a while now. The pair is currently testing the top of the range, but it seems that Aussie bulls are about to give up. Once Aussie bears take over, AUD/JPY could drop back to the bottom of the range again. If you’re planning to trade this one, make sure you set your stops above that recent spike.
Up, up, here we go! EUR/GBP has been crawling steadily inside a rising channel for the past couple of weeks. After testing the top of the channel a couple of times, the pair made a sharp drop to the bottom but support still held like a boss. At the same time, stochastic made its way out of the oversold region, suggesting that euro bulls could start taking the pair higher. Unless the bottom of the channel gives way, EUR/GBP could be on its way to test the top of the channel again.
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.