Somebody holler at Happy Pip because this trend play is too good to miss! NZD/USD is lollygagging around the .8450 zone, which is right above a rising trend line and 100 SMA support on the 1-hour chart. If you’re a day trader and you think that the Kiwi is headed higher, then you could place your stop below the support areas and then continue to build your positions when the pair makes new weekly highs.
Range traders huddle up! GBP/USD is testing the 1.6650 minor psychological handle. What makes this setup interesting is that the level is also a range support on the 4-hour chart. Not only that, but Stochastic is currently sitting on the oversold territory. Think the pound is headed higher? A stop loss just below the support area could get you a good risk ratio if you think that Cable is going back up to test the range resistance at 1.6780.
Check out this quadruple threat! AUD/JPY’s 93.00 handle would be a tough one to break for the bears not only because it’s a psychological area but also because it’s a previous resistance and a 38.2% Fib zone on the 4-hour chart. And let’s not ignore that Stochastic is about to hit the oversold territory! You can wait for a couple of bullish candlesticks or an actual oversold Stochastic signal before you enter or you could also buy now and place your stop losses below the Fib levels for a good reward-to-risk ratio. In any case, make sure you consider the potential volatility of yen pairs when computing for your stop losses!
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.