CAD/JPY is back to trading just below the 79.00 major psychological mark, which also lines up with an ascending triangle resistance on the 1-hour time frame. Not only that, but it also looks like the 100 and 200 SMAs are serving as pretty good support for the pair. Does this mean that an upside breakout is in the works? Read up on trading potential triangle breakouts like these if you haven’t done it yet!
If breakout trades aren’t your thing, then you might want to check out this trend play on AUD/NZD. The pair looks like it’s going back down to the 1.0650 levels, which is right smack at a 50% Fibonacci retracement as well as a 100 SMA and trend line support. Buying at the minor psychological handle could get you decent pips especially if you place your stops just below the trend line. Make sure to leave enough room for volatility when placing your stops though. Currency crosses like these tend to be more volatile than the majors, after all.
Here’s one for the dollar traders out there! USD/CHF is heading fast for the .9950 minor psychological handle, an area that has been serving as resistance since April. What’s more, stochastic has also just reached the overbought territory. Think dollar bears are waiting around the area? A short trade around the .9950 levels could give you a good reward-to-risk ratio especially if you aim for the range support. Just remember to practice good risk management and you’ll likely grab pips with this one.
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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.