Breakout alert! GBP/NZD is trading just below the 1.7400 psychological handle, which is above a falling channel that had been dictating the pair’s trend since late February. Are we looking at a legit breakout? Or is it just a fakeout? After all, stochastic is already chillin’ like a villain on the overbought territory. The 1.7475 level is a good spot to aim for if you think that the pound will continue to gain against the Kiwi. But if you think that the pair will soon go back to its downtrend, then waiting you might want to wait for a couple of bearish candlesticks before jumping in. In any case, make sure you place wide stops when trading currency crosses like these!
Here’s one for the trend warriors out there! AUD/JPY is lollygagging just below 87.00, which is right smack at a mid-channel AND 100 SMA support on the 1-hour time frame. Will the pair find support at the level? Or will the bears push for a retest of the channel support before handing the reigns to the bulls? Stochastic has just left the overbought area so it looks like there’s still room for a bit of bearishness, but watch out in case the Aussie starts to turn higher instead of dropping to the 86.00 support, will ya?
Forex Chart Settings:
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.