After bouncing from the 1.0400 psychological area, EUR/USD looks set to retest the 1.0550 minor psychological handle. What makes the level more interesting is that it also lines up with a support area from back in late November to mid-December. What’s more, it’s also right around where the 61.8% Fib and 100 SMA are on the 1-hour time frame. Think we’re about to see a support-turned-resistance scenario in the making? Watch this one closely for signs that the euro isn’t done falling against the dollar just yet!
Here’s another support-turned-resistance play for ya! Cable just bounced from the support at the 1.2400 major psychological handle is is now headed for the 1.2550 area of interest. This isn’t surprising since the level lines up with a broken rising channel support as well as the SMAs near some Fibonacci retracement levels. Waiting for a consolidation at the Fib areas is a good idea if you think that the pound will eventually fall back against the Greenback. Of course, you could also wait for a break above the 100 and 200 SMAs if you believe that the pound will return to its uptrend soon enough.
Comdoll traders huddle up! NZD/USD is flirting with the .6950 psychological handle, which isn’t surprising since it also lines up with a falling channel support on the 4-hour time frame. Not only that, but stochastic is chillin’ like a villain in the oversold region! Buying at current levels could get you a good reward-to-risk ratio especially if you aim for the channel resistance near .7100. But if countertrend trading isn’t your thing, then you can also wait for a retest of the channel resistance for potential short trade opportunities. In any case, make sure you practice good risk management when you execute your trading plans!
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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.