First up is a look at Happy Pip‘s arch-nemesis, the Aussie! For nearly a month now, this playa has been sticking within an ascending channel, rising all the way from the 1.0200 area to its current price just above 1.0750. Now that it is just about to retest the rising support line of the channel, will we see bulls come back in force? I’d wait for some candlestick confirmation before loading up on long positions!
Just like its comdoll sibling, the Aussie, the Kiwi has traded within a rising channel over the past few weeks. However, the pair has struggled to break through the .8400 handle and is now making its way back south to the bottom of the channel. I suggest you camp out and wait for a retest of .8300, as this was a former resistance-turned-support area which also happens to line up with the rising support line.
Lastly, here’s a simple range setup on the Swissy. This pair has been stuck in a 120-pip range recently and is currently finding solid support at around .9120. Stochastic is also showing oversold conditions, indicating that buyers may jump in soon. Now could be a good time to crank up some long positions! Just be sure to place your stops according! Check out this sweet guide on how to place stop losses when playing range setups!
Before you get carried away with all these chart patterns, remember that technical analysis is only half the story.
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.