AUD/JPY looks like it’s about to bounce from the 80.00 major psychological handle, which is right smack at a mid-channel support on the chart. What makes the level more interesting is that it’s also just above the 100 and 200 SMAs on the 1-hour time frame. Think we’re in for more gains for the Aussie? Buying at current levels could get you a decent enough reward-to-risk ratio especially if you think that AUD/JPY will make new monthly highs this week. Just remember to place your stops well below the channel support, aight?
Consolidation alert! GBP/CHF is lollygagging inside a possible bearish pennant on the 4-hour time frame. What’s more, the 100 SMA is also keeping a lid on the pound’s gains. As the School of Pipsology tells us, pennants like these tend to signal continuation for a trend. Watch out for a possible downside break on this one, will ya? Oh, an read up on trading breakouts if you haven’t done it yet!
This one is for the trend playas out there. USD/CHF is having trouble breaking above the .9950 psychological handle, which isn’t surprising since it lines up with a range resistance that hasn’t been broken since late April. Not only that, but stochastic is also chillin’ like a villain on the overbought territory. Shorting at current levels could get you a sweet reward-to-risk ratio especially if you aim for the range support around .9550. If you’re one of them dollar bulls though, then you can also wait for a break above the range and place your stops just below the broken resistance for a good risk ratio.
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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.