Let’s start with this sweet breakout setup! After rising strongly in March the pair is taking a breather around the .9300 area. The consolidation is forming a possible bullish pennant though, so the Aussie bulls might not be done with their cause just yet. What do you think? Will we see a breakout above the .9300 resistance zones?
Look who’s back at a support area! USD/CAD is lollygagging at the 1.1000 levels, which is right smack at a rising channel support on the daily time frame. What’s more, Stochastic has just reached the oversold territory. You could wait for a couple more bullish candlesticks or Stochastic to rise above the oversold regions if you’re not too sure about buying the Greenback against the Loonie.
Who’s up for a countertrend trade? If you are, then this setup is for you! EUR/GBP just bounced from a mid-channel support near the .8250 area and looks like it’s headed for its former highs. It also doesn’t hurt that Stochastic is on the oversold area. A stop just below this week’s lows could still get you a good risk ratio if you believe that the euro is going back to the .8400 levels.
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.