AUD/USD is having trouble breaking below the .7650 area, which isn’t surprising since it’s supported by not only the bottom of a rising channel, but also the 200 SMA on the 1-hour time frame. What’s more, stochastic has just taken off from the oversold territory! Buying at current levels could get you a sweet reward-to-risk ratio especially if you aim for February’s highs. Just make sure you place your stops well below the .7650 area! It would be a shame if you get stopped out because of tight stops, amirite?
Here’s one for countertrend traders out there! EUR/JPY looks like it has found support from the 119.50 handle, which is right smack at a mid-channel area on the 4-hour time frame. And, with stochastic chillin’ like a villain on the oversold territory, buying at current levels and aiming for the channel resistance around 120.50 is not such a bad idea. If you’re one of them conservative traders though, then you could also wait until the bounce plays itself out and enter a short trade around the channel and 100 and 200 SMA resistance levels. In any case, make sure you practice good risk management habits when executing your trading plans!
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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.