EUR/USD looks like it’s having trouble breaking above the 1.1200 major psychological handle after bouncing from the 1.1150 range support. What makes this setup interesting is that the mid-range levels line up with the 100 and 200 SMA, all while stochastic is chillin’ like a villain in the overbought territory. You can short at current levels and aim for a quick couple of pips if you think that the euro will retest its range lows. Of course, you could also wait for a move back to 1.1250 if you think that the common currency will see some more gains before seeing bearish momentum.
Somebody holler at Huck because this setup is too good to miss! GBP/USD is back at the 1.3050 minor psychological handle, which is right smack at a mid-channel resistance and 100 SMA retest on the 1-hour time frame. Think we’ll see more bearish moves for the pound? A short trade at current levels and stops just above the channel could get you a decent reward-to-risk ratio especially if you aim for new lows. Just make sure you practice good risk management!
Here’s another one for trend traders out there! USD/CAD just bounced from the 1.3300 mark, which lined up with a rising channel resistance on the daily chart. Right now it looks like it’s headed for the channel support around the 1.2900 levels though the 1.3050 mid-channel levels could also provide some support. Stochastic is currently on the bears’ side with an overbought signal, so you might want to take advantage of the bearish momentum before you plan any long trades. In any case, make sure you take down any and all contingencies in your trading plan if you’re planning on trading this setup!
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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.