EUR/AUD is having trouble breaking below the 1.4250 minor psychological handle, which isn’t surprising since the level lines up with a rising channel support on the 1-hour time frame. Not only that, but stochastic is also flashing an oversold signal. Think the euro is about to gain pips on the Aussie? Buying at current levels is a good idea if you think that the trend will continue to be your friend for a while yet. Take care to use wide stops though, as currency crosses like these tend to be more volatile than the majors.
If trend trades are not your thing, then you should check out this range play! GBP/CAD is lollygagging at the 1.6600 MaPs, which is right smack at the range support that hasn’t been broken since early November. What’s more, there also seems to be a bullish divergence slowly making itself known on the 1-hour chart. Buying at current levels could get you a good reward-to-risk ratio especially if you aim for the previous highs just below 1.7000. But if you’re not a fan of the pound, then you can also wait for a break below said support area and trade a downside breakout instead.
Last one up for this batch of charts is another trend play, this time on NZD/USD’s 4-hour time frame. The pair is having trouble breaking above the .72000 major psychological mark, which lines up with a falling channel resistance on the 4-hour time frame. Not only that, but there also seems to be a bearish divergence on the chart! Think the Kiwi will soon lose momentum against the Greenback? Time to bust out your trend-trading playbooks and whip up a trading plan for this one!
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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.