Breakout alert! USD/JPY is testing the 106.40 level, which is right smack at a descending triangle support on the 1-hour time frame. If the pair does break lower, then we could be looking at a 120-pip move in the making. Be careful though, as not all descending triangles break to the downside. Watch this one closely and see if you can bag pips from this setup!
Here’s one for the trend traders! AUD/USD is about to hit the .7350 psychological area, which lines up with a 200 SMA support on the 1-hour chart. What makes this setup more interesting is that stochastic is sporting a possible bullish divergence on the chart. A long trade at the support area could get you good pips especially if you believe that the Aussie is about to bounce against the Greenback. Whatever your game plan is, make sure you practice good risk management, alright?
If you can’t get enough of trends, then this one should get your trading juices flowing. NZD/USD is currently testing the .7040 area, which lines up with not only the 38.2% Fib, but also the 100 SMA and rising trend line support on the 1-hour time frame. A long trade at current levels could get you a good reward-to-risk ratio especially if you place your stops just below the trend line and aim for the previous highs. Make sure to leave enough room for volatility though!
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.