After finding resistance at the .7300 mark, NZD/USD looks set to revisit its rising channel support levels on the 1-hour time frame. The .7000 major psychological level is the closest possible support, as it also lines up with the mid-channel area on the chart. What’s more, the 100 and 200 SMAs are also sitting just below the mid-channel line. Think the Kiwi bears will lose steam around the area? Time to whip up your trading plans and prepare for a possible bounce on this one!
Those who missed USD/CAD’s first, second, and bajillionth test of a rising trend line have another opportunity today. The pair is currently lollygagging just above the 1.2950 psychological level, which lines up with the rising trend line support on the 4-hour time frame. Be careful of the 1.3100 mark though, as the resistance hasn’t been broken since mid-May this year. Will this ascending triangle break in either direction this week? Read up on trading triangle breakouts like this one if you haven’t done it yet!
Can’t get enough of trends? Here’s another one for ya! EUR/JPY is having trouble breaking above the 117.50 area, which is right smack at a 50% Fib resistance on the daily time frame. In addition, stochastic is almost at the overbought territory. What makes this setup challenging is that the pair could still go up to as high as 120.00 and its downtrend would still be intact, seeing as it lines up with the 100 SMA and a falling trend line that hasn’t been broken since October last year. Will the euro see losses against the yen or will it see some more gains before the bears step in? Watch this one closely, folks!
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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.