First up is an ascending triangle action on EUR/USD‘s 1-hour chart. The 1.3150 handle is holding strong as a resistance for now, but with the pair also finding support at a rising trend line, it’s only a matter of time before the euro traders choose a side. A stop below the rising trend line would be a good idea if you’re buying the pair at a break above 1.3150. Just keep in mind that ascending triangles could sometimes break to the downside too!
If you’re like my man Pipcrawler who can’t get enough of trading Cable, then this setup is for you! The pair seems to be hitting a resistance near the middle of the rising channel, which is also near the 1.5950 handle. Oh and look at that! Stochastic is about to hit the overbought region too! A stop above the 1.6000 major handle would be cool if you’re shorting the pair, but you can always wait for more signals if you want to enter at a better price.
Last up for today is a simple Fib play on GBP/JPY‘s daily chart. The pair bounced from the 38.2% Fib a couple of days ago, and it looks like it’s about to head for its previous highs. Not only that, Stochastic is also about to take off from the oversold territory! Will Guppy head up to make new highs, or will it drop back to test the lower Fib levels?
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.