Here’s an easy one for starters! GBP/USD just bounced from the 1.4450 minor psychological handle, which was right smack at a range resistance on the 1-hour chart. The pair has dropped by around 100 pips since then though, and looks like is headed for the mid-range levels. The bears can short at current levels and place stop losses just above the range resistance, while the bulls can wait for a retest of the 1.4250 mid-range levels before putting on long trades. Read up on trading ranges if you haven’t done it yet!
Resistance alert! EUR/GBP is headed for the .7900 area, which lines up with a mid-channel resistance on the 1-hour chart. Stochastic is also currently on the bears’ side with an overbought signal. Will the bears pounce at the level, or will the bulls gain momentum and manage to push the pair to its previous highs? In any case, make sure you place wide stop losses if you’re planning on trading this currency cross pair!
USD/CAD is having trouble breaking below the 1.2950 handle, which isn’t surprising since the level has served as a solid support since mid-2015. Right now it’s forming what looks like a double bottom on the 4-hour chart with the 1.3350 area serving as its neckline. Heck, even stochastic is signaling a potential bounce at the oversold territory. A long trade at current levels could give you a good reward-to-risk ratio if you believe that the pair will head for its previous highs. On the other hand, the bears could wait for a break below the major support level and trade a downside breakout and an extended downtrend for the pair.
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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.