Let’s start with an easy peasy trend play. NZD/USD is testing the .6750 minor psychological (MiPs) handle, which is right smack at the 100 and 200 SMA resistance levels on the 1-hour time frame. Not only that, but the level is also just below the falling channel resistance on the chart while stochastic is about to hit the overbought territory. A short trade at current levels could make for a good trade idea if you think that the Kiwi is about to lose pips to the dollar. Just make sure you keep close tabs on your position!
After breaking below an ascending triangle, AUD/JPY is showing a possible pullback play. More specifically, it’s currently testing the broken trend line around the 79.00 major psychological handle and a 100 SMA retest. In addition, stochastic is supporting the bears in the overbought area. Think the Aussie is about to go back to its downtrend? Stop losses just above the SMAs and the broken trend line could give you a good reward-to-risk ratio especially if you aim for new lows. Keep your stops wide though, as yen pairs like this one tend to be more volatile than the majors!
Can’t get enough of trend trades? Here’s another one for you! NZD/CAD is lollygagging just above the .8800 mark, which has been an area of interest for the pair since early March. This time around the support level also lines up with the SMAs and a mid-channel support on the 4-hour time frame. Of course, the cherry on top of this sweet setup is an oversold stochastic signal. Will the Kiwi gain pips on the Loonie today?
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.