First up is an easy peasy trend play on Cable’s chart. The pair is currently lollygagging at the 1.2400 major psychological handle, which is right smack at a rising trend line support on the 1-hour time frame. A bounce from the trend line could take the pair all the way to its previous highs near 1.2550, while a downside break could drag it to the 1.2300 MaPs near the 200 SMA support. Which way do you think the pair will go? Watch this one closely, folks!
Here’s another short-term trend play for ya! EUR/USD is now testing the 1.1050 minor psychological handle, which happens to line up with a rising trend line AND a 38.2% Fib support on the 1-hour time frame. The cherry on top of this potentially bullish sundae is a small bullish divergence on the chart. Did the SMA crossover earlier this month signal a bullish run for the euro? Or had the bulls gotten their fill when they failed to break the 1.1100 resistance?
Rounding up today’s trend plays is USD/CAD consolidating around the 1.3450 area, which lines up with a rising channel resistance on the daily chart. What makes this setup more interesting is that stochastic is chillin’ like a villain on the overbought territory. Shorting at current levels could get you a good reward-to-risk ratio especially if you aim for the 1.3100 channel support. Countertrend trading isn’t for everyone, though, so you could also wait for the pair to drop down to either the 1.3200 mid-channel level or the 1.3100 support before jumping in on the pair’s uptrend.
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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.