Check out USD/CAD’s range holdin’ like a boss! The pair has been bouncing up and down between support around .9880 and resistance near the .9950 minor psychological level. Coincidentally, these levels line up with the previous week’s low and the previous week’s high! Pretty cool, huh? The pair seems to be aiming for the top of the range again, but stochastic already turned from the overbought zone, suggesting that USD/CAD might drop again really soon!
If you’re into longer-term plays, then you might find this setup on AUD/USD’s daily chart to your liking. Resistance at the 1.0750 area has been holding for quite a while already while the pair has been forming higher lows. Well, that’s an ascending triangle right there! AUD/USD seems to be edging closer and closer to the bottom of the triangle, which could act as support once stochastic crawls out of the oversold region. But with the oscillator still pointing down, Aussie bears could have enough energy to go for a downside breakout!
Last but not least, here’s another potential range play on NZD/USD. The pair has been pacing back and forth between support near the .8100 major psychological handle and resistance at .8275. That’s a really wide range, if you ask me! If you missed out on the initial bounce from .8100 lately, you might find another reason to jump in because there’s a bullish divergence that just formed. Could this mean that NZD/USD will be headed back up to the .8275 level? Make sure you check out the 9 Rules for Trading Divergences if you plan to take this trade!
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.