First up for the week is a nice and simple rising channel play on AUD/USD. The pair found resistance around the .7750 minor psychological handle, which is right smack at the channel’s resistance. What’s more, stochastic has also just bounced from the overbought territory. The bulls can wait for a retest of the channel’s support for possible entry opportunities while the bears could short at current levels and place stop losses above the .7750 area. Just make sure you have the guts (and budget) for countertrend trades!
Breakout warriors huddle up! After shooting up by around 90 pips, EUR/GBP is currently lollygagging at the .8000 major psychological level. What makes this setup interesting is that there seems to be a bullish pennant forming on the 1-hour time frame. Think the euro is about to see more gains against the pound? Or will the bears use the psychological handle as an excuse to attack? Watch this one closely, fellas!
Last one up for today is a potential resistance-turned-support play on NZD/USD’s chart. The pair had just broken above a channel that had been valid since early February, and has found some resistance at the .7000 area. The .6850 zone is a good area to watch if you think that the Kiwi would retrace a bit more before shooting back up. Of course, you could also wait for a couple of candlesticks to drop back into the channel if you think that the pair had just faked out.
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.