We’re starting off with a potential pullback on NZD/USD! After hitting a high near .6700 and with Stochastic sitting at the overbought zone, NZD/USD looks like it’s ready for some retracement. The .6550 area is a good place for a pullback, as it’s near a previous support and the 61.8% Fib on the 1-hour time frame. Think the pair will go back to those levels? Keep this one in your crosshairs, will ya? While the Kiwi still has some room before we see a touch to the .6550 area, it could always encounter shallower support somewhere near the 38.2% and 50% Fib levels.
Here’s another one for comdoll fans out there! CAD/JPY is currently lollygagging at a rising channel support, which is right smack in the middle of the 100 and 200 SMA support on the 1-hour chart. Stochastic isn’t any help at the moment, but it might not take a lot for the bulls to pounce, especially since the channel has been solid since mid-January. A long trade at current levels could get you a good reward-to-risk ratio if you think that the Loonie will go back to its late January highs. Just make sure you make room for enough volatility when placing your stop losses!
Swing traders huddle up! USD/CHF is hitting the 1.0050 minor psychological handle, which lines up with a rising channel support and the 200 SMA on the 4-hour time frame. What’s more, we might also be seeing a bullish divergence in the making. Will the dollar see some gains against the franc this week? Like in the CAD/JPY setup above, buying at channel support levels could make for a good trade idea on this one. Watch out for potential fakeouts though!
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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.