First up is a nice and simple trend trade on USD/CHF. The pair found support from the .9650 area, which lines up with a rising channel support on the 4-hour time frame. What’s more, stochastic is chillin’ like a villain in the oversold territory. Think the dollar is about to gain pips on the franc? A long trade at current levels could get you a good reward-to-risk ratio especially if you aim for the previous highs. Of course, you could also wait for a break below the channel support and trade a downside breakout if you’re one of them dollar bears.
Here’s another trend trade for ya! USD/CAD is having trouble breaking below the 1.3050 minor psychological handle, which coincidentally lines up with the 100 SMA support on the 4-hour chart. Not only that, but the setup is also sporting a slight bullish divergence! Will the Loonie lose more pips on the Greenback? Or will the comdoll bulls hustle some muscle and push for a downside break this week?
Last one for this batch of charts is a simple retracement trade on AUD/NZD. The pair is lollygagging at the 1.0550 area, a level that has served as support and resistance area in the past. This time around the MiPs is supported by not only a 50% Fib, but also the 200 SMA on the 4-hour time frame. Are we looking at a bounce in the making? Read up on using Fibonacci retracements to enter trades if you haven’t done it yet!
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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.