Here’s an easy peasy setup to start the day! GBP/CAD is finding support at the 1.6550 area, which is right smack at the mid-channel support on the 1-hour chart. What’s more, stochastic had just left the oversold zone! Is it time to buy? A stop just below the support could get you a pretty good risk ratio if you aim for the top of the channel.
Is USD/CAD in for a rejection? The pair is hanging around the 1.0300 psychological handle, which is also a 38.2% Fib and former support on the 4-hour chart. If you’re not too excited over buying the Loonie, then you can also wait for a convincing break below the 1.0300 handle before you jump in. Just make sure that you place appropriate stop losses!
Calling all range traders! USD/CHF is sitting tight at the .9100 major psychological area on the daily chart while stochastic is on the oversold region. Is the pair about to bounce? Be careful on trading this one, brothas! If the dollar doesn’t jump over the next couple of days, then you could also consider a downside break play.
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.