Let’s kick off with an easy peasy trend play on USD/CHF. The pair is hitting a potential support just below the 1.0150 handle, which lines up with the 38.2% Fib and mid-channel line on the 1-hour time frame. Buying at current levels with stops below the mid-channel area could get you some pips if you think that the pair is shooting up at any moment. You could also wait for deeper retracements or even a retest of the channel bottom if you aren’t too confident about buying the dollar right now.
Loonie traders huddle up! USD/CAD is hitting the 1.4000 major psychological area, which is right smack at the 50% Fib, 200 SMA, and previous area of interest on the 4-hour time frame. The cherry on top of the setup sundae is a bullish divergence popping up on the chart. Think the Loonie is about to see some losses against the Greenback? Placing stops just below the SMA and Fibs could still get you a good reward-to-risk ratio if you aim for the previous highs. Of course, your could always wait for a better deal and wait for a bounce off the 1.4000 handle or at least a couple more candlesticks that point to the possible return to the pair’s uptrend.
Last one up for today is another Fib play, this time on AUD/JPY’s chart. The pair is about to hit the 85.00 major psychological handle, which is also where the 200 SMA and 61.8% Fib are. Not only that, but a bearish divergence is also making its presence known. Right now the pair is sporting pretty good reversal candlesticks but you could always wait for a bit more momentum before you enter a short trade on this one.
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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.