Think the Aussie selloff is over? If you do, then this setup is for you! AUD/USD just hit support at .7650, which coincides with a rising trend line support on the 4-hour chart. Not only that, but there’s also a bullish divergence lining up to support the bulls. A stop just below the trend line is a good idea if you’re buying the pair, but watch out in case this week’s selloff still has momentum!
This one is for range traders out there. CAD/JPY is lollygagging at the 94.50 area, a support that hasn’t been broken since early February. Loonie bulls could take advantage of a 100 to 150-pip move if they aim for the top of the range near 96.00 to 96.50. If you’re not too excited over buying the comdoll though, then you could also wait for a break below the support. Just make sure you’ve reviewed your breakout strategies!
Last but definitely not the least is this sweet retracement trade on GBP/NZD. Much like yesterday’s GBP/AUD setup, the pair is also hitting some nice resistance levels. This time, the 61.8% Fib even lines up with a possible 100 SMA resistance. Lastly, the bearish divergence I’m seeing could add weight to the pair’s turn. What do you think? Will we see GBP/NZD weakness some time this week?
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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.