It’s a coin toss for USD/CAD! The pair might be bouncing along a falling channel on the 1-hour chart, but right now it’s hanging at the mid-channel support with no direction in sight. Will it retest parity once again or will it drop to the channel support near the .9900 area? Keep a close eye on this one, homies!
Take a look at this hot setup! Guppy is finding support at the 128.00 major psychological area, which is near a rising trend line on the 4-hour chart. And check it out – Stochastic is in the oversold region too! A stop loss below the trend line is a good idea if you think that the pound bulls will make a run for GBP/JPY’s previous highs near the 130.00 handle.
If you think that the Greenback has no more room to rise then you might want to check out USD/CHF‘s higher time frames! The pair looks like it’s just getting warmed up for a trip up the charts after bouncing from a rising trend line. The bullish divergence hasn’t played out its potential either. Make sure you have your long-term trading plans in place for this one!
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.