First up is this sweet retracement setup on AUD/USD’s 1-hour chart. The pair encountered resistance at the .8900 handle and it looks like it’s headed lower. Will the .8800 area provide support? After all, the level is not only near the 61.8% Fib but also a former resistance zone. It’s only a couple of pips away so keep close tabs on this one!
This setup is so simple that it hurts my eyes to see it! GBP/CAD just bounced from the 1.8050 zone, which had served as resistance in the past. Will this spell a reversal for the pound? We won’t know for sure until we see it but, for now, Stochastic is on the bulls’ side. A stop just below the support area could still get you a good risk ratio if you’re planning on buying this pair and aiming for the previous highs.
Last but definitely not the least is this position trade setup on the daily chart. The Aussie got a few pips on the Kiwi yesterday but the 38.2% Fib and former resistance levels are giving a good fight against the bulls. With Stochastic on the overbought region, do you think that the Aussie is set to go back to its lows? Watch the Fib levels closely, brothas! We might get a good tug-o-pips show out of 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.