Retracement alert! USD/JPY is hitting up the 110.50 minor psychological (MiPs) handle, which is right smack at a previous resistance and 50% Fib retracement on the 1-hour time frame. Not only that, but it’s also just below the 100 SMA. The cherry on top of the bulls’ setup is a potential bullish divergence on the chart. A long trade at current levels could make for a good trade if you believe that the dollar is about to lose pips on the yen. Just make sure you place your stops well below the support areas!
Here’s one for comdoll traders like Happy Pip! AUD/NZD is having trouble breaking below the 1.0650 MiPs, which isn’t surprising since it’s a rising channel support on the 1-hour chart. What makes this setup more interesting is that the 100 SMA has just crossed above the 200 SMA. If you’ve read your School of Pipsology, then you’ll know that we’ll likely see an uptrend in the near future. Planning on taking this one? Make sure you log in your moves and countermoves in your trading journals first!
Can’t get enough of trend setups? I got yo back with Cable’s uptrend! GBP/USD is about to hit the 1.4450 levels, which lines up with not only the 100 and 200 SMAs, but also the rising channel support on the 4-hour chart. Even stochastic is chillin like a villain on the oversold territory! A long trade at current levels could give you a good reward-to-risk ratio especially if you aim for the previous highs. Pay close attention to your risk management though, as I hear from Pip Diddy and Forex Gump that this pair could see some wild volatility in the next few days.
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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.