The Canadian dollar went cray-cray yesterday, and it took USD/CAD for a long, fast ride down the charts. But now, it seems to be settling down, as its chilling right below the .9900 handle. Keep an eye on this pair because a shallow retracement could see USD/CAD test a former support area at .9930, and that could give you the opportunity to catch the pair as it resumes its fall.
If you ain’t in the mood to short the dollar, then consider this setup on USD/CHF. Heck, it’s practically a mirror image of the setup above! The .9000 handle was once a strong resistance level, and it actually took the market three tries before it broke through this area. Now that price is turning down from .9050, it’s possible that the pair will revisit .9000. If and when that happens, look for this level to act as support, especially since it falls in Fib territory.
Rounding up today’s terrific trio is AUD/USD with a sweet rising channel. The pair just recently bounced off the channel’s rising support and Stochastic is turning up from oversold territory. These could be interpreted as signs that the pair is about to start another bull run. Look for the pair to retest the previous high at around 1.0850, but also be on the lookout for any breakout plays that may arise. Good luck and good trading, homies!
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.