First up is a nice and simple trend play on EUR/GBP. The pair is currently testing the .9000 major psychological level, which is just above a rising trend line and 100 SMA support on the 1-hour time frame. Not only that, but stochastic is also about to hit the oversold territory. A long trade around current prices could get you a good reward-to-risk ratio especially if you think that the pair will head to its previous highs. Just make sure to place a stop losses safely below the support areas!
Here’s another trend play for ya! AUD/CAD is having trouble breaking above parity, which isn’t surprising since the level is right below a mid-channel resistance and the 100 and 200 SMAs on the 1-hour chart. The cherry on top of this sundae is an almost overbought stochastic signal. Think the Aussie is about to lose more pips on the Loonie? Watch this one closely, folks!
I spy with my bright, blue eyes a potential triangle breakout in the making! EUR/USD is about to reach the 1.1000 area, which is right smack at a symmetrical triangle support on the daily time frame. As the School of Pipsology tells us, triangles like these can break out in either direction. Make sure you stick around when the pair finally chooses a direction! More importantly, make sure you have your trading plan in place and potential scenarios listed down 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.