Let’s start with a S&R-Fib action on USD/CHF! The pair is lollygagging at the .8880 area, which is a support and resistance zone on the 4-hour chart. What makes the setup more interesting is that it’s also a 38.2% Fibonacci retracement level. Think the Greenback is headed lower? You can place your stop above the Fib areas if you’re looking for new lows but you can also wait for a couple more bearish candlesticks before you jump in.
Ready for another support-and-resistance play? EUR/CAD had just bounced from the 1.5150 minor psychological level, which is an area of interest for the pair since early February. What’s more, Stochastic had just left the oversold area! Do you think the euro is headed higher against the Loonie or are the euro bears just getting a breather?
Here’s one for position traders out there! GBP/NZD is not only hitting a rising channel support near the 1.9200 major psychological zone, but it’s also popping up a bullish divergence on the daily time frame! A stop just below its previous lows could get you a sweet reward-to-risk ratio if you think that the pound will revisit its yearly highs against the Kiwi.
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.