First up is an easy peasy uptrend play on USD/CHF. The pair just bounced from the .9900 major psychological handle, which lines up with a rising channel support on the 1-hour chart. Not only that, but a bullish divergence has also popped up along the way. Think the dollar will gain more pips on the franc today? A long trade at current levels would give you a good reward-to-risk ratio especially if you aim for the previous highs. Just make sure you don’t tighten your stops too much and risk getting taken out on a surge in volatility!
Here’s one for retracement traders! EUR/USD is having trouble breaking above the 1.0950 mark, which isn’t surprising as it’s sitting on a 50% Fib AND previous resistance levels. Heck, even Stochastic is on the bulls’ side with an overbought signal! A short trade is a good idea if you think that the euro would revisit its previous lows. On the other hand, you could also wait for a break above the Fib lines if you believe that EUR/USD is actually headed for its previous highs.
NZD/USD is lollygagging just below the .6750 minor psychological handle, which lines up with a range resistance that has been holding since the start of February. What makes this setup more interesting is that Stochastic is also flashing an overbought signal. You could place a tight stop on this one if you’re one of them Kiwi bears and you think that the pair is about to drop. Of course, you could also wait for an upside breakout if you think that the dollar will fall against comdolls like the Kiwi today.
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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.[glossary_thesaurus term=””]