Remember that trend line break that we were looking at last week? Well, it looks like a support-turned-resistance is in play this time! AUD/USD just bounced from the .7650 minor psychological handle, which lines up with not only the 61.8% Fib, but also a broken trend line area on the 1-hour chart. On top of that, stochastic is also sporting an overbought signal. Will the 100 SMA soon cross below the 200 SMA and signal the start of a downtrend? Watch this one closely, folks!
Here’s one for currency cross traders out there! AUD/CAD is currently testing its trend line support on the 1-hour time frame. Of course, it also doesn’t hurt that the trend line support is right smack at PARITY levels for the pair. A bounce from the area could lead to a revisit of its 1.0150 previous highs, while a break lower could open the pair for a move to its .9950 area of interest. Buying at current levels could set you up for a decent trade especially if you use your risk management mojos before you place your orders.
Here’s another one for trend traders out there! EUR/CHF is having trouble breaking above the 1.0900 major psychological handle, which isn’t surprising since it’s also sitting at a falling channel resistance on the 1-hour chart. What’s more, stochastic is also flashing an overbought signal. Shorting at current levels could get you a good reward-to-risk ratio especially if you place your stops just above the channel. Good luck!
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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.