Kiwi bulls huddle up! NZD/CHF has just bounced from the .6950 area, which is right above a rising channel support on the 1-hour time frame. What makes this setup more interesting is that the 100 SMA has just crossed ABOVE the 200 SMA while stochastic just left the oversold area. Think the Kiwi is in for more gains against the franc? A long trade at current levels could give you a good reward-to-risk ratio especially if you aim for the channel resistance. On the other hand, you could also wait for a break below the trend and trade a downside breakout if you’re one of them Kiwi bears.
EUR/CAD is lollygagging just above the 1.4550 area, which lines up with a mid-channel support on the 1-hour time frame. What’s more, stochastic is chillin’ like ice cream filling on the oversold territory. Euro bulls could start to build long positions around the area, but you could also wait for a test of the channel support near the 100 SMA if you think that the euro could still see losses against the Loonie before returning on its merry way up.
Not feeling the euro these days? EUR/USD is having trouble breaking above the 1.1100 major psychological handle, which is right smack where the 100 SMA is on the 4-hour time frame. What’s more, stochastic has also just left the overbought levels. Shorting at current prices could make for a good trade especially if you aim for the pair’s previous lows. Just make sure you practice good risk management, aight?
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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.