Missed the bearish pennant that we checked out a few days ago? Don’t worry, I found another one for ya! GBP/USD is currently consolidating in what looks like another bearish pennant on the 1-hour time frame. If you’ve read the School of Pipsology or traded the one we looked at earlier this week, then you’ll know that these babies tend to point at trend continuation. Think the pound is in for more losses against the Greenback? Watch this one closely, folks!
Next up is a sweet range play on CAD/JPY. The pair has just bounced from the 77.00 major psychological handle, which conveniently lines up with last month’s support. What’s more, stochastic has just taken off from the oversold territory. A long trade at current levels could still get you a decent reward-to-risk ratio especially if you aim for the previous highs. Just make sure you use wide stops for yen crosses like this!
Last one for this batch of charts is a nice and simple resistance play. AUD/NZD is having trouble breaking above the 1.0550 minor psychological handle, which has been a support and resistance area since last month. What makes this setup more interesting is that the resistance level also lines up with the 200 SMA on the 4-hour time frame while stochastic is also chillin’ in the overbought region. A short trade at current levels could make for a decent trade especially if you place your stops just above the resistance lines. Just make sure you practice good risk management!
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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.