First up is a nice and simple trend play on GBP/USD. As we can see from the 1-hour chart, the pair is being supported by a sweet rising trend line since early last week. If you think that Stochastic‘s departure from the oversold region is a signal for another bounce, then you better get your orders ready! If you’re one of them pound bears though, then you can also wait for a break below the trend line support before you jump in.
Who’s up for a retracement setup? AUD/USD is having trouble breaking below the .9600 area, which also lines up nicely with the 38.2% Fib on the 4-hour chart. Not only that, but there’s also a bullish divergence popping up! If you believe that the pair isn’t done retracing, then you can also wait for a retest of the .9500 resistance, which is right near the 50% Fib on the chart. A stop loss below the Fib levels could still get you a risk ratio if you aim for the pair’s previous highs.
Last but definitely not the least is a solid support play on NZD/JPY. The pair looks like it’s headed for the 80.00 major psychological handle, which is right smack at a previous support and resistance zone. A break below the level could also mean a possible double top neckline break, so y’all better watch this level closely!
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.