Euro traders huddle up! EUR/USD is consolidating just below the 1.1500 area, which isn’t surprising since it’s near a 38.2% Fib and 100 SMA on the 1-hour chart. What makes this setup more interesting is that the support also lines up with resistance levels from late March and early April. Think the euro is about to see another bounce? Read up on using Fibonacci retracements to enter trades if you haven’t done it yet!
Here’s one for the Loonie bulls out there! CAD/JPY is finding support at the 83.00 major psychological handle, which is right smack at the rising channel support on the 4-hour time frame. Right now stochastic is on the bulls’ side with an oversold signal. A long trade at current levels could get you a good reward-to-risk ratio if you aim for the channel’s resistance. Make sure that you use a wide stop loss though, as yen crosses tend to be more volatile than the majors.
And the saga continues! For those who are watching NZD/USD’s relentless rising channel, you should know that the pair is now just below the .6900 mark, which is also near a rising channel AND 200 SMA support on the 4-hour time frame. The cherry on top of the bulls’ sundae is an oversold stochastic signal. The bulls can buy at market and aim for the previous highs while the bears can also wait for the pair to break below the channel and SMA support lines before placing short trades.
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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.