Breakout alert! AUD/NZD looks like it’s about to break above a falling channel that we spotted a couple of days back. Will Aussie bulls get past the channel resistance, 200 SMA, AND the 1.0400 major psychological handle? Buying at a break above said levels could get you in on the uptrend pretty early, but you can always wait for a retest back to the broken resistance levels if you’re not sure about the upside breakout. Oh, and keep close tabs on this one in case we’re looking at a fakeout after all and the pair drops back down to the channel support at 1.0300!
Now here’s a break-and-retest scenario for ya! EUR/CHF has bounced from the 1.1000 major psychological area after breaking above a range resistance at 1.0925. What makes the setup interesting is that it lines up with not only the broken resistance, but also a 38.2% Fib on the 4-hour chart. The cherry on top of the setup is an oversold stochastic signal. A bounce from the Fib support could propel the pair back to its previous highs, while a drop lower could drag it to the range support at 1.0800. Which direction do you think the pair will go?
Somebody holler at Huck because this setup is too good to miss! USD/JPY is testing a falling trend line that hasn’t been broken since the start of the year. If that’s not enough to get you to pull up your own charts, then you should also know that the resistance is sitting near a 100 SMA retest. Oh, and check out stochastic chillin’ like a villain on the overbought territory! Shorting at current levels could make for a good trade if you believe that USD/JPY would make new lows this time. On the other hand, you could also wait for a break above said resistance levels and trade a potentially massive breakout if you’re one of them dollar bulls.
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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.