Aussie traders huddle up! AUD/USD is sitting on a hot area, as it flirts with the .7000 major psychological handle. What makes this setup interesting is that we’re also looking at a retest of a rising channel support. I smell a battle between the bulls and bears in the making! Will Aussie bulls win another round, or will the bears find enough support for their camp? Stochastic is currently on the bulls’ side with an oversold signal, but watch out for any events during the Asian session that might tip the scale in the bears’ favor!
Can’t get enough of trend plays? Here’s another one for ya! GBP/JPY is about to retest a rising trend line – one that has been valid since mid-January – on the 1-hour time frame. As you can see above, the 172.00 area is also right smack in the middle of a 100 SMA touch and a couple of Fib retracement levels. What’s more, Stochastic just hit the oversold territory. A long order at the trend line could make for a good trade if you think that the pound has more to gain from the yen. Just make sure you allow enough room for currency cross volatility!
Last up for today the nice Fib play that we’ve been watching from a couple of days back. Right now USD/CAD looks like it’s bouncing from the 50% Fib, which is near the 1.4000 psychological handle and a previous area of interest. Watch out for the SMAs though, as they could drag on the Greenback’s momentum against the Loonie. A long trade at current levels could get you a good reward-to-risk ratio if you think that the pair is headed for its previous highs. On the other hand, you could also enter at higher levels if you want to wait for momentum.
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.