Remember that downtrend that we were checking out earlier this week? Well, here’s another opportunity to jump in! Cable is sitting at the 1.3000 major psychological handle, which is right around the 100 and 200 SMA resistance levels on the 1-hour time frame. Not only that, but it’s also just above a falling channel line that’s been holding since the start of the month. Oh, and check out that overbought stochastic signal! Shorting at current levels is a good idea especially if you aim for the previous lows. Just make sure you practice good risk management, aight?
Here’s another one for trend traders out there! CAD/JPY has just bounced from the 75.50 levels, and it looks like it’s headed for the 76.50 territory. What makes the area interesting is that it lines up with not only a falling trend line, but also the 100 and 200 SMAs on the 1-hour chart. Keep close tabs on this one in case the Loonie bulls push the pair high enough for a decent short trade!
I spy with my cool, blue eyes a potential breakout in the making! AUD/USD is currently testing the falling trend line of what looks like a symmetrical triangle pattern on the daily chart. Judging by the size of the triangle, an upside break could push the pair higher by at least 300-400 pips. If you don’t think that an upside break is in the cards just yet though, then you can also wait for a retest of the rising trend line near the 100 and 200 SMAs before you place any long order.
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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.