First up is a nice and simple trend play on GBP/CAD. The pair is currently finding support at the 1.6450 minor psychological area, which is right smack at a trend line AND 200 SMA support on the 1-hour time frame. Not only that, but there’s also a bullish divergence that’s pointing to a possible continuation of the trend. A long trade at the earliest signs of a bounce could get you a good reward-to-risk ratio especially if the pair pops up to its previous highs. Just make sure you practice good risk management, aight?
Remember that Fib play opportunity that we spotted a while back? Well, it looks like Guppy is finally testing the level! GBP/JPY is lollygagging around the 130.00 major psychological level, which lines up with not only a 38.2% Fib resistance, but also a support level from early August and mid-September. Oh, and check out a small bearish divergence shaping up on the 4-hour chart! Shorting at current levels is a good idea if you think that the pound is about to lose pips against the yen. Of course, you could also wait until the pair shoots up above the Fib levels if you’re one of them pound bulls who are aiming for the August highs near 138.50.
Breakout alert! AUD/USD has just broken above an ascending triangle on the daily chart. Are we looking at a breakout? Or is this a fakeout in the making? Stochastic looks like it’s reaching for the overbought territory while the pair is having trouble breaking above the .7800 psychological handle. As the School of Pipsology tells us, breakouts on triangles like these area usually as wide as the triangle’s base. In this case, we’re talking at least a 200-pip move. Keep close tabs on this one, folks!
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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.