First up is a nice and simple trend trade on AUD/NZD. The pair looks like it’s bouncing off the 100 SMA, which also happens to be just below a falling channel resistance on the 1-hour chart. Not only that, but it’s also right around the 1.0300 major psychological handle! A short trade at current levels could get you a decent trade especially if you aim for the previous lows. Just make sure you leave enough room for currency cross volatility!
USD/CAD is having trouble breaking above the 1.3200 mark, which is right smack at a support-turned-resistance channel retest AND an area of interest for the pair. It also doesn’t hurt that the psychological level lines up with a 61.8% Fib retracement. The cherry on top of this setup sundae is an overbought stochastic signal. Think the dollar is about to lose pips against the Loonie? Read up on using Fibs to jump in on trends if you haven’t done it yet!
Trend trades not your thing? Here’s a range play for ya! GBP/AUD is chillin’ like a villain at the 1.7250 area, which is right at a range support on the 4-hour time frame. What makes this setup more interesting is that stochastic is throwing an oversold signal for the bulls. A long trade at current levels could yield a decent reward-to-risk ratio especially if you place your stops just below the support areas. Make sure you practice risk management though!
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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.