First up is this sweet trend play on NZD/USD! The pair just bounced from a rising channel support near the 200 SMA levels. Not only that, but Stochastic has also just left the oversold territory. A stop just below the .8500 area could still get you a sweet reward-to-risk ratio if you believe that this comdoll will make new highs this month.
If you’re not feelin’ the long USD/CHF setup that I pointed out yesterday, then you could check the lower time frames. On the 4-hour chart USD/CHF is having trouble breaking above the .8825 area, which is near the 38.2% Fib and former support levels. You could place your stop losses just above the Fibs if you’re one of them dollar bears, but you could also wait for a break above the resistance areas if you’d rather trade the 100 and 200 SMA crossover that’s usually taken as a bullish signal.
Last one up for today is a sweet counter trend play on EUR/GBP. The euro is back at the mid-channel support levels. This time though, the chart is also popping up a potential bullish divergence. Think the support will hold again? Read up on trading counter trend trades if you haven’t tried it yet!
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.