Aussie bulls huddle up! AUD/USD is hovering just above the .7675 area, which lines up with not only a mid-channel support, but also the 100 SMA on the 1-hour time frame. Oh, and check out the hidden bullish divergence on the chart! A long trade at current levels is a good idea if you think that the Aussie’s uptrend will see momentum in the next trading sessions. On the other hand, you could also wait for a break below said support areas if you think that the Aussie is about to run out of juice against the Greenback.
Here’s another trend trade for ya! GBP/JPY is about to hit the 132.50 levels, which is right smack at the Fibonacci retracement areas on the chart. In addition, the minor psychological level also lines up with the 100 SMA AND a falling trend line retest on the 1-hour time frame. Think the pound is about to see more losses against the yen? Watch this one closely, brothas!
If trend trading is not your thing, then this one’s for you! EUR/CHF is having trouble breaking below the 1.0850 psychological level, which isn’t surprising since the area lines up with a mid-range support on the 4-hour time frame. What’s more, stochastic is also flashing an oversold signal. Will the euro soon bounce against the franc? Buying at current levels could get you decent pips if you believe that the common currency would go back to its previous highs. Of course, you could also wait for a downside break and short the pair if you think that euro bears are about to hustle their muscle in the next couple of days.
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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.