Calling all range traders! AUD/USD is sitting tight at the 1.0250 minor handle, which lines up nicely with the bottom of a range on the 1-hour chart. Not only that, but Stochastic is on the oversold territory too! The Aussie bulls could target the top of the range at 1.0370 for a swing trade. Aiming for the 1.0310 mid-range area is also cool if you’re not too excited about buying the comdolls.
Don’t look now, but Cable has just broken a MAJOR support area! The pound selloff yesterday killed the 1.5350 handle, which had supported the pair since late 2010. A stop above the psychological level is a good idea if you’re jumping in or you could also wait for a retest if you think that the pound still has room for a retracement.
Still haven’t gotten enough of the yen selloff? Then this setup is for you! After a relentless rally, EUR/JPY is consolidating in a possible bullish pennant on the daily chart. The 129.00 area is a sweet spot to aim for in case of an upside breakout. Watch out for this setup though! Read up on our trading breakouts section if you haven’t done it yet!
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.