Trend traders huddle up! USD/CAD is currently testing a mid-channel resistance on the 1-hour chart and it looks like it’s also being held down by the 100 SMA. Not only that, but Stochastic has also just left the overbought region. You could wait for a retest of the 100 SMA or even the channel resistance if you’re not too sure about buying the Loonie though.
Here’s another trend trade for ya! GBP/JPY is right at a falling trend line resistance on the 4-hour chart. And is that a bearish divergence I see? Why, yes it is! A stop loss just above the trend line could get you a good risk ratio if you think that the pound is headed down against the yen.
Breakout alert! EUR/USD had just broken out of a falling channel and it’s headed fast towards the 1.3800 zone. What do you think? Will the bears successfully defend the psychological area once again? Stochastic hasn’t reached the overbought area yet so you still have time to plan for a short trade. On the other hand, you could also buy the pair and take profits at the 1.3800 area.
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.