Resistance alert! USD/CAD is currently testing the 1.3350 minor psychological handle, which is right smack at a rising channel resistance on the 4-hour chart. What’s more, stochastic is chillin’ like a villain on the oversold territory. A bounce from the level could drag the pair back to the 1.3200 mid-channel level, if not the 1.3100 channel support area. If the pair breaks to the upside, however, then we could also be looking at a move to the area of interest at 1.3800 or the year’s highs around 1.4600.
Here’s one for trend traders out there! EUR/GBP is lollygagging at the .8900 major psychological handle, which isn’t surprising since it also lines up with a 61.8% Fib, 100 SMA and a rising trend line support on the 4-hour chart. Oh, and check out the potential divergence, too! Buying at current levels could get you a pretty good reward-to-risk ratio especially if you think that the euro will go back to its October highs. Just make sure you practice good risk management while you’re at it!
Last one up for this batch of charts is a range play on EUR/NZD. The pair is popping up dojis left and right as it stalls around the 1.5100 major psychological handle and a range support that hasn’t been broken all year. Not only that, but stochastic has also just crossed around the oversold region. Think the euro is in for a bounce? Buying at current levels with stops below the range support could get you serious pips if the pair bounces. Keep your tops wide though, as currency crosses like these can show volatility like nobody’s business!
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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.