AUD/NZD is back at the 1.0350 – 1.0400 area after hitting the 1.0550 zone earlier this month. What makes the setup more interesting is that current price levels line up with a medium-term falling trend line resistance that was just broken at the start of the year. Are we looking at a resistance-turned-support situation here? Stochastic has already taken off from the oversold region, but I figure you could still jump in as long as you aim for the previous highs. Just don’t use tight stops on this one, aight? Currency crosses like these can see volatility like nobody’s business!
I spy with my cool, shaded eyes a descending triangle in the making! EUR/CHF is lollygagging around the 1.0680 support that’s been tested (and has held) several times since November. Is nth time the charm for the bears? Stochastic is currently on the bulls’ side with an oversold signal, so keep an eye out for a retest of the falling trend line resistance for a better opportunity to short the euro. Read up on trading breakout patterns like these if you haven’t done it yet!
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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.