Let’s start off with this easy peasy retracement play on AUD/USD. After hitting a resistance just below the .7700 major psychological handle, the Aussie looks set to test the .7500 area. What makes this forex setup interesting is that it’s also near the 50% Fib, 100 and 200 SMAs, and a previous resistance on the 1-hour time frame. Not only that, but Stochastic has also popped up an oversold signal. Think the pair will bounce at these levels? Read up on trading trends if you haven’t done it yet!
Here’s one for forex breakout hunters! AUD/JPY is currently lollygagging inside a symmetrical triangle. Price hasn’t broken in either direction yet, but the SMAs are on the bears’ side with a crossover on the 1-hour chart. If you’ve read the School of Pipsology, then you’ll know that triangles like this one tend to break in either direction. With this potential breakout being a yen cross, you’ll want to take extra precaution with your stop losses. Make sure you leave room for extra volatility!
Last one of for today is a simple range play, this time on NZD/USD. The pair hit a resitance at the .6850 minor psychological handle, and is now back inside a range on the 4-hour time frame. What’s more, Stochastic has just left the overbought territory. The .6700 major psychological area is a good level to watch out for if you’re planning on buying the Kiwi. Of course, you could also sell at current levels and place your stops above the previous highs if you’re targeting the range support.
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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=””]