I spy with my cool, blue eyes a neat trend play in the making! USD/CAD is about to hit the 1.3375 area of interest, which is also right smack at a retest of the falling channel resistance that hasn’t been broken since early November. Not only that, but stochastic is also flashing an overbought signal. Think the scrilla is about to go down against the Loonie? Shorting at current levels could get you a sweet deal especially if you aim for the recent lows around the 1.3000 MaPs. Don’t place your stops too close to the channel resistance though, as the pair has shown tendency to produce fakeouts in the past. In any case, make sure you practice good risk management habits when hitting setups like these!
Reversal alert! Well, okay maybe not just yet. But right now AUD/NZD looks like it’s getting rejected at the 1.0750 handle after consolidating above the 1.0600 area. As you can see on the chart above, the psychological handle has been serving as resistance for the pair since way back in mid-2015. Now that’s commitment for Aussie bears! Will they win another round this week? After all, stochastic is on their side with an overbought and slightly divergence-y signal. The 1.0600, 1.0550, and 1.0400 are levels to watch if you’re planning on shorting this baby. Just make sure you use a wide enough stop, 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.