Let’s start off with a long-term trade on AUD/CAD. The pair has been trading on a falling channel since late last year and I don’t see a breakout anytime soon. Stochastic is nearly oversold though, so the pair might retest its resistance near the 1.0400 area before it heads south. If it doesn’t head back up, you could always jump in at a good price and place your stop above the channel.
Here’s another cross pair for ya! If we zoom in on EUR/GBP‘s 4-hour chart, we’ll see that it’s hanging just below the .8100 handle, which is a former support and resistance area for the pair. And is that a bearish divergence we’re seeing? If you’re looking to short the pair, you might want to place your stop above the .8100 major psychological level.
Last up for the week is a potential day trade setup on USD/JPY. The pair is about to hit its rising trend line support on the 1-hour time frame and the nearly oversold Stochastic signal is also suggesting an upside move. Will the yen bears continue to push the pair higher or will we see a trend line break today?
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.