Remember that breakout that we spotted a couple of days back? Well, it looks like the breakout led to an uptrend! USD/CHF is currently lollygagging around the .9950 minor psychological handle, which is right around where the rising trend line and 100 SMA support levels are on the 1-hour time frame. Think the Greenback will reach new highs against the franc this week? Read up on trading trends like these if you haven’t done it yet!
If dollar pairs aren’t your thing, then you’re gonna like this downtrend play on EUR/JPY. The pair is having trouble breaking above the 113.50 minor psychological handle, which isn’t surprising since it’s sitting just below a channel resistance and 100 SMA on the 1-hour time frame. Not only that, but stochastic has also just left the overbought territory. Shorting at current levels is a good idea if you think that the euro will go back to its October lows against the yen. On the other hand, you could also wait for a break above said resistance levels if you’re one of them euro bulls.
Here’s one for the comdoll traders out there! NZD/CAD has just bounced from the .9500 mark, which lines up with not only a rising channel, but also a 100 SMA retest on the 1-hour time frame. Oh, and check out the slight divergence on the chart! Buying at current levels and targeting new highs could still give you a good reward-to-risk ratio, especially if you place your stops just below the rising channel. Keep your stops relatively wide though, as currency crosses like these tend to be more volatile than the majors!
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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.