Breakout alert! After consolidating in what looks like a symmetrical triangle, Cable seems to have chosen to break higher. The pair is just breaking above the pattern near the 100 SMA and the 1.2200 major psychological handle. The 1.2400 area is a good place to target if you’re planning on a short-term long trade. Just make sure you place your stops below the broken triangle in case we’re seeing a fakeout!
I spy with my cool, blue eyes a trend trade opportunity! AUD/CAD is trading just below the 1.0050 minor psychological handle, which lines up with a falling channel resistance that hasn’t been broken since late September. Will the resistance hold for another day? Shorting at current levels could get you a good reward-to-risk ratio especially if you aim for the previous lows around .9900. On the other hand, you could also wait for an upside breakout and go for a long trade if you’re one of them Aussie bulls.
Here’s another one for trend traders out there! NZD/USD is now trading just below the .7200 mark, which is right smack at a 50% Fib retracement and broken channel support. Not only that, but the 100 SMA also seems to be holding back the bulls at the moment. Think we’re seeing a break-and-retest situation in here? A short trade with stops above the Fib levels sounds like a decent plan if you think that the Kiwi will go back to its October lows. Meanwhile, waiting for a break above said support levels is also a good alternative if you think that Kiwi’s uptrend isn’t over just yet.
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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.