Here’s a neat range trade for ya! AUD/USD is having trouble breaking below the .7500 major psychological handle, which isn’t surprising since it also serves as a range support on the 1-hour time frame. Stochastic is currently on the bulls’ side with an oversold signal, but you could always wait for a downside break if you’re one of them Aussie bears.
Here’s one for the euro bulls out there! EUR/JPY is showing a couple of bullish candlesticks around the 122.50 area, which has been intact as a support since late February. Not only that, but stochastic is also in the oversold territory. A long trade at current levels could get you a good reward-to-risk ratio. Just remember to keep your stop losses wide, as yen crosses can be more volatile than the majors these days.
Not feeling the love for the euro? Here’s one for ya! EUR/USD is popping up a lot of dojis around the 1.4000 major psychological level, which has served as an unchallenged resistance since early 2015. What’s more, Stochastic is also on the overbought region. Think the bears will pounce again this time? A stop above the resistance level could make for a nice trade especially if you aim for the previous lows. Keep an eye out for an upside break though, as we could see a burst above the level if the stop losses just above the area get hit.
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.