Let’s start with a lil’ something for the trend warriors out there! USD/CHF is currently lollygagging just below the .9900 major psychological handle, which is also right smack at a falling channel resistance on the 4-hour chart. Stochastic isn’t any help for the bears right now, so keep close tabs on this one in case we see an upside breakout. If you’re betting that the pair would fall though, then shorting at the current levels with stops just above the previous highs might be enough to get you a good reward-to-risk ratio.
Here’s an easy peasy support and resistance play on NZD/USD. The pair is about to hit the .6850 mark, a level that has served as a major support and resistance area since mid-March. Not only that, but stochastic is also chillin’ in the oversold territory. Think the Kiwi is about to lose pips against the dollar? Get you trading plans ready in case NZD/USD hits the area of interest!
If you can’t get enough of trend plays, then here’s another one for you! EUR/GBP is heading for the .7800 major psychological handle, which is also near a falling channel resistance and the 200 SMA on the 4-hour chart. This time around stochastic is also on the bears’ side with its overbought signal. A short trade at the .7800 area could make for a good trade idea if you believe that the pound would soon gain its pips back from the euro. On the other hand, you could also wait for a break above the falling channel if you’re one of them euro bulls.
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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.