First up is a simple consolidation play. USD/CHF is trading on a tight range on the 1-hour chart and it doesn’t look like it’s about to pick a direction anytime soon. Buy or sell stop orders could work if you’re planning on a breakout setup and you can choose among the previous support and resistance levels on the chart for your profit and stop loss targets.
I spy with my Ray-B covered eyes a possible head and shoulders breakout! AUD/JPY is testing what looks like a neckline of a reverse head and shoulders pattern on the daily chart. According to the School of Pipsology, the breakout’s move could equal the distance from the neckline to the tip of the head in the pattern. Wanna give this one a shot?
Trend traders huddle up! USD/CAD is testing a pretty solid rising trend line on the daily chart! And is that an oversold stochastic signal I see? Heck yeah it is! A stop just below the trend line could get you a sweet risk ratio if you think that the pair is headed for its previous highs.
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.