If you’re like me and you’ve got your eye on USD/CHF for a while, then you must know that a previous trend line support has become a resistance line on the 1-hour chart. In fact, the pair is testing the level as I write this piece. Shorting with a stop above the intraweek high may be something to think about if you think that the dollar is in for more losses.
If you don’t feel like shorting the Greenback today, then you could take a look at USD/JPY‘s trend line that has been intact since early this month. Stochastic isn’t in the oversold zone just yet, so the dollar bears still have room to short until the pair actually tests its trend line support.
Last up for today is a nod to breakout-trading friends. Cable is currently bouncing along a 70-90-pip range on the 1-hour chart and it looks like it’s planning to stay there for a couple more hours. Still, it has to choose a direction some time, right? Read up on the Trading Breakouts section of the School is you’re planning on getting a piece of the Cable action!
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.