After finding support at the .7250 area, AUD/USD looks set to retest previous areas of interest. The .7400 level is looking pretty good for a retracement especially since it lines up with the 50% Fibonacci level on the 4-hour time frame. Heck, it’s also just below the 100 SMA on the chart! Shorting around the Fib areas is a good idea if you’re one of them Aussie bears. Of course, you could also wait for a retest of the SMAs and aim for a higher entry if you’re not too sure about a downside bounce around those levels.
Trend traders huddle up! EUR/NZD is having trouble breaking above the 1.5000 major psychological handle, which is right smack at a falling trend line resistance on the 4-hour chart. What’s more, the level lines up with the 200 SMA on the chart! The cherry on top of this bearish sundae is an overbought stochastic signal. Think the euro is about to see more losses against the Kiwi? Whip out your trading plans and plan your strategies as soon as you can if you want to take advantage of a possible continuation of a downtrend!
CAD/JPY hasn’t broken above the 89.00 major psychological level, which isn’t surprising since it has been serving as a major support and resistance area for the pair since mid-2015. What makes the setup more interesting today is that stochastic seems ready for a dip. Shorting at current levels is a good idea if you think that the Loonie is in for a big reversal. On the other hand, you could also wait for a break above said resistance level and trade an upside breakout if you believe that the yen would continue to weaken against the comdoll in the next couple of days.
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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.