Remember that rising channel that we were looking at last week? Well, it looks like you’ve got another chance to enter the uptrend! AUD/JPY is currently lollygagging around the 85.60 area, which is right smack at the rising channel’s support AND the 100 SMA on the 1-hour time frame. Not only that, but stochastic is also on the bulls’ side with an oversold signal. A long trade at current levels could get you a decent trade especially if you place your stops just below the 200 SMA and aim for at least the mid-channel resistance. But if you’re one of them Aussie bears, then you could also wait for a break below said support levels and trade a downside breakout instead.
Here’s one for comdoll bears out there! Forex bulls are finding it hard to push Kiwi above the .7125 area, which isn’t surprising since it lines up with a falling channel resistance that hasn’t seen a solid breakout since August 2016. Think we’re about to see more losses for the New Zealand dollar? Shorting at current levels could give you a good reward-to-risk ratio especially if you aim for the previous support. Just make sure you plan for any and all contingencies in your trading plan, 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.