Is USD/CHF ready to resume its downtrend? The pair is currently at the .8750 minor psychological area, which is right around a mid-channel resistance on the 1-hour chart. What’s more, Stochastic is also flirting with the overbought region. A break above this week’s highs could push the pair all the way to the .8800 zone while a mid-channel bounce could drag the dollar back to .8700.
Here’s one for the range traders! AUD/USD just found support at the .9000 major psychological area on the 1-hour chart. What makes this setup sweeter is that Stochastic is also in the oversold territory. A stop loss just below the mid-range support could get you a good risk ratio if you think that the Aussie is headed back to the .9100 zone.
Not into trading the Greenback these days? No worries! EUR/JPY is presenting a hot trend setup with price currently hanging near a rising trend line, previous resistance, and a 61.8% Fib. Not only that, but there might also be a bullish divergence in the works! Remember that the yen crosses have more volatility than the major dollar pairs, so you might want to set wider stop losses if you’re thinking of trading 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.