First up is a nice and simple trend play on EUR/NZD. The pair is hovering at the 1.5200 major psychological level, which is right smack at a trend line and 100 SMA resistance on the 1-hour time frame. Oh, and check out stochastic chillin’ like a villain on the overbought territory! A bounce from the level could take the pair all the way to its 1.5050 lows, while a break higher could open up opportunities for a break-and-retest play on the trend line.
Here’s another trend play for ya! AUD/USD is having trouble breaking below the .7650 minor psychological handle, which lines up with a rising channel support AND 100 SMA. What’s more, stochastic is also popping up an oversold signal on the 1-hour time frame! Buying at current levels could give you a good reward-to-risk ratio especially if you believe that the Aussie will go back to its .7750 highs. Of course, you could also wait for a break below said support levels and trade a downside breakout if you’re one of them Aussie bears.
Retracement alert! EUR/GBP is hanging around the .8450 minor psychological level, which lines up with not only a 38.2% Fib retracement, but also a pretty significant area of interest on the 4-hour time frame. The cherry on top of the bears’ sundae is an overbought stochastic signal. Think the euro is about to lose more pips on the pound? Watch the consolidation closely and see if you can catch pips on a possible move lower!
Forex Chart Settings:
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.