Let’s start off with a simple break-and-retest play on NZD/USD’s 1-hour forex chart. The pair has recently broken below support at the .7650 minor psychological level and dipped to the .7550 area. From there, price showed signs of making a correction and using the Fib tool on the latest swing high and low shows that the broken support is near the 50% retracement level. If the Fib levels hold as resistance, the pair could make its way back to its previous lows or even create new ones!
Next up is a neat little range play on EUR/CAD’s 1-hour forex time frame! The pair is currently sitting at the top of its short-term range, still deciding whether to make a bounce or a break. If the resistance around the 1.3225 level holds, the pair could move back to the bottom of the range near the 1.3075 support area. Stochastic is suggesting that a selloff is likely, as the indicator is moving down from the overbought zone and showing that euro bears are gaining control. Just make sure you set your stops right if you’re thinking of shorting!
Lastly, here’s a rising trend channel visible on EUR/JPY’s 1-hour forex chart. The pair has just tested the top of the channel near the 130.00 major psychological resistance and may be headed for the bottom soon. Price seems to be finding support at the mid-channel area of interest though and, with stochastic moving up from the oversold area, the pair could be able to resume its climb at this point. If you’re more patient though, you could wait for an actual test of the channel support at the 129.00 handle before going long.
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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.