Trend traders huddle up! In case you’re too focused on finding trends on the majors, then you should know that GBP/CHF has been quietly trading along an ascending channel. Right now the pair is bout to touch the 1.5250 area, which is near the channel’s support as well as the 100 SMA on the 1-hour time frame. Stochastic isn’t any help right now, so you have room to wait before you can pull the trigger. Bulls can wait for a trend line (or even a 100 SMA retest) before putting on a long trade while the bears can also wait for an overbought Stochastic signal (if not a channel breakdown) before planning any short trades.
Here’s one for majors traders luck Huck! EUR/USD is lollygagging along the 1.0850 levels, a support that has hasn’t been broken since mid-April. Not only that, but Stochastic is also sporting an oversold signal. Will this mean another bounce for the pair? Or will the bears finally have enough muscle to break down the gates and trade below the major psychological support? A stop just below the support area is a good idea if you’re confident on the euro bouncing while waiting for a downside breakout before shorting is a good idea if you’re one of them euro bears or dollar bulls.
Last up for today is this sweet Fib trade on the Kiwi. After hitting a resistance at the .6900 area, NZD/USD is now back at the .6600 levels and is showing a couple of hesitation candles. Is it because it’s right smack at a 50% Fib AND 200 SMA support on the 4-hour chart? It also doesn’t hurt that there’s a bullish divergence popping up on the chart. A long trade at market prices could get you decent pips if you place your stops below the Fibs and aim for previous highs. Just make sure you write your plans down on a trading journal!
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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.