Trend traders huddle up! AUD/JPY is having trouble breaking above the 78.50 area, which is near a mid-channel resistance on the 4-hour time frame. Not only that, but stochastic also looks like it’s about to reach the overbought territory. Think the Aussie is about to go back to its previous lows against the yen? Be careful in trading this one, as I’ve heard from both Forex Gump and Pip Diddy that the yen could see volatility spikes today!
Here’s one for the breakout warriors out there! After bouncing from the 1.2750 levels, USD/CAD is headed for the 1.3150 area. What makes this setup more interesting is that the resistance mark lines up with an ascending triangle resistance and the 100 SMA test on the daily time frame. Keep close tabs on this one, folks! Remember that ascending triangles don’t always break to the upside and, with the 100 SMA just crossing below the 200 SMA, a downside breakout is also a possibility.
Last one for this set is a nice and simple support play on the daily time frame. EUR/CHF has stopped its recent slide at the 1.0780 area, which is right smack at a support level that hasn’t been broken since August last year. What’s more, stochastic is also currently on the bulls’ side with an oversold signal. Will the euro see another bounce against the franc? A long trade at the support levels could get you a good reward-to-risk ratio especially if you aim for the previous highs. Just make sure you keep your stops wide, aight? You never know just how many stops could get triggered just below the 1.0780 mark!
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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.