Retracement alert! After bouncing from the .6700 area, NZD/USD is now finding resistance at the .6800 major psychological handle. This isn’t surprising since the level is near a 38.2% Fibonacci retracement, 100 SMA, and an area of interest for the pair. Think the Kiwi is about to lose pips against the dollar? A short trade at current levels could get you a good reward-to-risk ratio especially if you aim for the previous lows. On the other hand, you could also wait for a break above the resistance levels and aim for the previous highs if you’re one of them Kiwi bulls.
Trend traders huddle up! NZD/CHF is sporting bearish candlesticks at the .6650 minor psychological level, which is right smack at a falling channel resistance and the 200 SMA on the 1-hour time frame. What makes this setup interesting is that stochastic is also flashing an overbought signal. A short trade at current levels could make for a good trade idea if you place your stop losses just above the resistance areas. Make sure you place wide stops though, as currency crosses like this one tend to be more volatile than the majors!
Here’s one for the breakout hunters! EUR/JPY is forming what looks like a descending triangle on the 4-hour time frame. If you’ve read the School of Pipsology, then you’ll know that we’re likely looking at a downside breakout in the making. Will the euro soon break below the 122.50 triangle support? Read up on trading breakouts 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.