First up for the day is an easy peasy trend trade on EUR/GBP. The pair has been lollygagging in a rising channel and is currently testing its channel support. Not only that, but it’s also near a 100 SMA retest and the .7200 major psychological handle. A long trade at current levels could open up a 100-pip trade all the way to the channel resistance. Of course, you could also wait for a couple more candlesticks to confirm a move higher. Just make sure you take note of it on your trading journal!
Here’s one for breakout traders! CAD/JPY bears are gunning for a break below the 89.00 major psychological handle, an endeavor that hasn’t been successful after a test yesterday. If you’ve read your School of Pipsology, then you’ll know that a double bottom could signal a trend reversal for a currency pair. It’s still around 50 pips away from the 90.00 neckline, so you’ll have time to whip up a trading plan for a possible breakout. If you’re confident that 89.00 would hold and that traders will play Stochastic’s oversold signal, then a long at current levels could get you more pips. As always with currency crosses like this one, make sure you keep your stop losses wide in case we see a spike in volatility!
It’s #FlashBackFriday for this setup! After breaking its rising trend line early this week, AUD/JPY is encountering what looks like a break-and-retest around the broken support. This time around the line and the 100 SMA are keeping the forex bulls at bay. A short around the current levels could get you decent pips if you believe that the Aussie will be dragged back to its previous lows. Of course, you can also wait for a move back above the trend line if you think that AUD/JPY is just seeing a fakeout.
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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.