Our first setup of the day is an easy peasy support play on EUR/USD. Not only is the pair headed for the 1.0820 resistance and support line, but the 100 SMA has also just crossed above the 200 SMA line on the 1-hour time frame. The cherry on top of the setup is an oversold signal from Stochastic. You could buy at the support area though it will probably be a better idea if you wait for a couple more candlesticks in case the euro isn’t done falling against the Greenback just yet.
Here’s another support play for ya! AUD/USD is headed for the .7175 area, which is a support that has been holding since the start of the month. In addition, Stochastic looks like it’s about to hit the oversold territory. Will the support hold for another day? A long trade at the levels could get you decent pips if you think that the Aussie will head back to its previous highs. Of course, you could also wait for a downside breakout if you’re one of them Aussie bears or dollar bulls.
Last one up for today is a countertrend play on GBP/AUD. The pair is lollygagging just above the 2.0800 levels, which is right smack at the mid-channel line and Fib levels on the 4-hour chart. Not only that, but Stochastic is also sporting an oversold signal. A long trade at current levels could make for a good trade if you aim for the channel’s highs. Gotta make your stops wide though, as currency cross volatility is usually wonkier than the majors!
Forex Chart Settings:
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.