Trend warriors huddle up! EUR/GBP is heading fast towards the .9000 major psychological handle, which is just above a rising channel support on the 1-hour time frame. Not only that, but the chart’s 100 SMA is also hovering around the support level! A long trade at the .9000 MaPs is a good idea if you think that the uptrend would remain intact for the next couple of days. Just make sure you practice good risk management, aight?
If you’re a trend playa and you’re not into waiting for opportunities, then this one’s for you! USD/CHF is currently having trouble breaking below the .9700 major psychological handle, which lines up with a rising channel support on the 4-hour time frame. What makes this setup more interesting is that stochastic is also flashing an oversold signal. Think the dollar is about to pop higher against the franc? Buying at current levels could get you a good reward-to-risk ratio especially if you aim for October’s highs. Of course, you could also wait for a break below the .9700 area and trade a downside breakout if you think that the bears aren’t done doing damage on the Greenback.
Breakout alert! NZD/CAD just broke above the .9600 major psychological handle, a level that had been holding since May last year. Stochastic is showing an overbought signal though, so you might want to watch out for bears who might push the pair back down to a retest of the .9600 MaPs before giving up the reigns to the bulls. If you really think that we’re looking at a breakout and not a fakeout though, then you can use small positions and just continue to build your trade as the pair continues its way to new yearly highs.
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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.