First up is a nice and simple support play on EUR/USD. Euro bears are having trouble breaking below the 1.0525 level, which isn’t surprising since it has served as support for the pair since late November. This time around a bullish divergence has also popped up to entice the bulls. Think the euro is in for a small bounce against the dollar? Buying at current levels and aiming for the previous highs around 1.0800 could get you a pretty good reward-to-risk ratio in this case. Keep close tabs on your trades though, especially if you place tight stops just below 1.0500!
I spy with my cool, blue eyes a trend opportunity on AUD/USD’s shorter time frames! The pair is lollygagging around the .7450 MiPs, which is also right smack at a rising channel support on the 1-hour time frame. Oh, and look at stochastic chillin’ like a villain on the oversold territory! Buying at current levels is a good idea if you think that the Aussie will continue its uptrend against the Greenback. Of course, you could also wait for a break below said support areas and plan a breakout trade if you’re one of them Aussie bears.
Last up for this batch of charts is another potential trend play, this time on USD/CAD’s daily time frame. The pair is heading fast for the 1.3000 – 1.3050 area, which lines up with a rising channel support that hasn’t been broken since late April this year. What’s more, a retest of the support area would also line the pair up with a 200 SMA support on the chart. The cherry on top of this potentially bullish sundae is an oversold stochastic signal. Will the dollar bounce back against the Loonie some time in the next couple of days? Watch this one closely, brothas!
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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.