First up for today is an easy peasy trend trade on Cable. The pair is having trouble breaking below the 1.4550 level, which lines up with the 200 SMA and rising channel support on the 1-hour time frame. What’s more, stochastic is flashing an oversold signal. A long trade at current levels could get you a good reward-to-risk ratio especially if you aim for the previous highs. Of course, you could also wait for a break below the psychological support and trade a downside breakout if you’re one of them pound bears.
Here’s another trend trade for ya! USD/CAD is lollygagging at the 1.2700 major psychological (MaPs) handle, which is right smack at a falling channel resistance on the 1-hour chart. Heck, even stochastic is on the bears’ side with an overbought signal! Will the pair get rejected at the MaPs, or will the bears find some more muscle in their hustle and push for an upside breakout? Watch this one closely, brothas!
Can’t get enough of the euro and the pound? EUR/GBP’s recent ascent encountered a roadblock around the .7900 major psychological level. What makes this setup interesting is that it also lines up with a major support from late February and mid-March as well as a 50% Fib retracement on the 4-hour time frame. Think the euro is about to lose pips on the pound? Read up on using Fibs to enter trades if you haven’t done it yet!
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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.