Trend warriors huddle up! AUD/USD is about to hit the .7400 major psychological handle, which lines up with the 38.2% Fib on the 4-hour chart. Not only that, but it’s also just below the 200 SMA! The cherry on top of the bears’ setup is an overbought stochastic signal. Will the Aussie go back down to its previous lows? Read up on using Fibs to enter trades if you haven’t done it yet!
If trends aren’t your thing, then here’s a sweet range trade for ya. CAD/JPY is testing the 82.50 mark, which is right smack at a range support that hasn’t been broken since April. Not only that, but stochastic is also flashing an oversold signal. Think the Loonie is about to get lucky against the yen? A long trade at current levels could get you a good reward-to-risk ratio especially if you aim for the range resistance. Just widen your stops, aight? The yen pairs love their volatility!
This one is for the breakout junkies out there! NZD/CHF is testing the .6800 levels, a resistance which hasn’t been broken since November 2015. This time around the retest is also accompanied by a bearish divergence and a pretty wicked wick on Friday’s daily chart. Shorting at current levels is a good idea if you’re one of them Kiwi bears. Watch out for the rising trend line around the .6600 levels though, as we could also be looking at an ascending triangle in the making!
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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.