First up is a nice and simple resistance trade on AUD/NZD. The pair has just landed on the 1.0700 psychological level, which also happens to be an area that had served as support and has been serving as resistance since May 2016. What makes the setup more interesting is that stochastic is also flashing an overbought signal. Think Aussie bears are waiting to feast around the area of interest? Shorting at current levels is a good idea if you think that the 1.0700 will keep its status as unbroken long-term resistance in the next couple of days. Just make sure you practice good risk management habits when you do execute your trades, aight?
Here’s one for the trend warriors out there! GBP/CAD had trouble breaking above the 1.6500 major psychological handle, which isn’t surprising since it was right smack at the falling channel resistance AND the 100 SMA on the daily time frame. The pound has dropped by around 200 pips since the retest, but I figure it still looks good for a short if you’re aiming for the previous lows around the 1.5850 levels. Keep an eye out for stochastic though, as it’s about to hit the oversold region. Oh, and make sure you use wide stops, will ya? Currency crosses like these tend to see more volatility than the majors, after all. Peace out!
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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.