Breakout alert! NZD/USD has just barreled through the .7100 psychological handle, which has served as support back in late October. What makes this setup more interesting is that the 100 SMA has also just crossed above the 200 SMA. Will NZD/USD now aim for its previous highs around .7400? Or are we looking at a fakeout that will eventually take the pair back to its .7000 lows? Watch this one closely, brothas!
Here’s one for the trend warriors out there! EUR/AUD is consolidating just above the 1.4200 psychological area, which is also right around the falling channel resistance as well as the 100 SMA on the 1-hour time frame. What’s more, stochastic is chillin’ like a villain on the overbought territory. A short trade around current prices is a good idea if you think that the euro will soon lose more ground against the Aussie. But if you’re one of them euro bulls, then you can wait for a breakout above the channel resistance before placing your long trades.
If you can’t get enough of short EUR trades, then here’s another one for ya! After breaking below the level earlier this month, EUR/CHF looks set to retrace to the 1.0800 handle, an area that had served as support for most of 2016. Bulls and bears are likely watching the 1.0800 MaPs since it’s also right smack at a 38.2% Fibonacci retracement level while stochastic is fast approaching the overbought region. Think the euro will bounce from the area? Or will the euro break above the resistance to retest the 1.1000 levels?
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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.