How’s this for a countertrend play? If we zoom in on AUD/USD‘s 1-hour chart we’ll see that the pair is on a rising trend line since early this week. What’s making this setup more interesting is that it’s currently at the 61.8% Fib zone, which is near a previous resistance and the rising trend line support. And if that’s not bullish enough for ya, check out the Stochastic indicator on the oversold area!
Look who’s slowly getting stronger! The euro seems to be winning the silent tug-o-pips against the pound as EUR/GBP encounters mid-range support near the .8500 major psychological level. If you think that the hammer and slightly oversold Stochastic signal is enough reason to go long, then you could think about targeting the range’s resistance while placing your stop loss just below the recent lows.
Here’s another Fib play for ya! USD/CAD is still hanging around the 1.0200 psychological handle, which is right smack at the 61.8% Fib area on the daily chart. Not only that, but Stochastic is also on the oversold territory! A stop below the Fib levels could still give you a pretty solid risk ratio if you plan on aiming for the previous highs near 1.0400.
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.