It’s decision time for the Loonie bulls and bears! USD/CAD’s 1.1000 level is an interesting resistance zone not only because it’s a psychological handle, but also because it’s near a 38.2% Fib and a previous support on the 4-hour time frame. Think the Loonie bulls are up for the challenge? A stop just above the Fib and SMA levels is a good idea if you think that USD/CAD is headed for new lows.
Miss trading the yen? Here’s one for ya! NZD/JPY is lollygagging at the 88.00 MaPs, an area that lines up nicely with a 61.8% Fib, 200 SMA, and rising channel support. The yen cross is currently consolidating at the level though, so waiting for a breakout might be a better play if you’re not too sure about selling the yen. Read up on trading breakouts if you haven’t tried it yet!
Our last setup is similar to NZD/JPY. EUR/AUD is also near a rising channel and 200 SMA support. Since this is a daily chart, we’re talking bigger pip opportunities. A stop below the channel could still get you a good risk ratio if you think that the euro will retest the 1.5700 areas. That’s 1,000 pips away, brothas! You could also scale in or wait for price to drop some more in case you don’t want to buy the euro or sell the Aussie just 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.