EUR/USD went all R Kelly on the chart, as it bounced, bounced, bounced, bounced, bounced, bounced, bounced, bounced, bounced, bounced all over the 850-pip range on the daily chart. This time around it found support from the 1.0550 minor psychological handle, and it looks like it’s ginning for the 1.1050 mid-range levels. You could still get a decent reward-to-risk ratio if you aim for the range resistance and place your stops just below the recent lows. Watch out for the mid-range area though! Forex bears could be waiting around the resistance area and put downward pressure on the euro over the next couple of days.
Range trading not your thing? Here’s a trend play for ya! USD/CAD is having trouble breaking below the 1.3200 major psychological level, which is right around a mid-channel support on the daily time frame. What makes the level more interesting is that it also lines with an area of interest from earlier this year. Not only that, but stochastic is also chillin’ like a villain on the oversold territory. Think the dollar will find support at the level? Or will Loonie bulls drag the pair all the way to the 1.3000 area before giving up the reigns? Read up on entering trades using Fibs if you haven’t tried it yet!
I spy with my cool, blue eyes a support-turned-resistance play in the making! GBP/USD is about to hit the 1.2800 – 1.2850 levels, which lines up with a 61.8% Fibonacci retracement and 100 SMA retest on the daily time frame. What’s more, the level has served as support from July to October. Shorting around the previous support area could make for a good trade if you’re one of them dollar bulls. If you think that the pound will gain more ground though, then you can also wait for a break above the 100 SMA and the Fib areas before plotting your long trade plans. Just remember to stick to your trading plan like glue when you execute them, aight?
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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.