Let’s start with an easy peasy trend trade on EUR/USD. The pair is finding support at the 1.1300 major psychological handle, which lines up with a rising channel support on the 4-hour time frame. What’s more, stochastic is sporting a possible bullish divergence in the making. A long trade at current levels could make for a good trade if you target the previous highs. Of course, you could also wait for a downside breakout if you’re one of them euro bears.
Reversal alert! After breaking above a falling trend line, USD/CAD looks set to start a possible uptrend. In fact, it has already retested the 1.2800 support and could soon make new monthly highs. Be careful about buying this one though, since stochastic is almost in the overbought region. Waiting for new high and an SMA crossover could be a good strategy if you’re planning on buying the Greenback. You could also wait for a rejection at the 1.1300 area and a drop back below the trend line if you’re bearish on the dollar.
Comdoll traders huddle up! AUD/NZD is currently finding support at the 1.0750 area, which is right smack at a rising channel support on the daily time frame. What makes this setup more interesting is that stochastic is also in the oversold region. Thinking of buying this one? Make sure you place wide stop losses!
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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.