If you’re looking to short the euro, then this yen cross setup might get your attention. EUR/JPY encountered resistance at the 50% Fib retracement on the 1-hour chart, and it looks like it’s about to continue heading down. Stochastic is also on the bears’ side for now, but make sure you place your stops above the Fib lines in case the euro bulls decide to flex their muscles.
This setup is so sexy that it’s making my eyes hurt. And I’m wearing my Ray-Ban! USD/CHF encountered support at the .9150 minor psychological handle a few 1-hour candles back, but this time a bullish divergence seems to have formed right when Stochastic is about to leave the oversold territory. Will the pair reach its previous high near .9250, or will it break below .9150 and slump back to its .9100 support?
Somebody call my man Cyclopip and tell him of this setup! EUR/GBP just bounced like a pinball from a strong resistance at the .8265 handle. Not only that, Stochastic is also hanging on the overbought zone! A target at the previous low near the .8225 handle might be a good idea if you’re playing the 1-hour range, but don’t forget to get your stop losses ready above the resistance area that we spotted!
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.