First up is a simple trend play on EUR/USD. The pair is about to hit the 1.6000 major psychological handle, which is right smack at the mid-channel support on the 1-hour time frame. What makes the level more interesting is that it has been serving as resistance and support for the pair since late December. This time around the 200 SMA is also providing additional support. The cherry on top of the sweet sundae is an oversold stochastic signal. Think the euro is about to bounce against the Greenback? Watch this one closely, brothas!
Breakout alert! AUD/USD looks like it’s breaking below the .7500 major psychological mark, which happens to line up with the 100 SMA as well as a rising trend line that hadn’t been broken since the start of the year. The .7450 area of interest is a good profit target if you’re thinking of shorting at current prices. If you want to be more conservative of your entry though, then you could also wait for a retest of the broken trend line or at least more candlesticks to confirm a downside breakout. You wouldn’t want to get caught in a fakeout, would you?
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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.