Start your day with this sexy setup on EUR/USD. Looking at the hourly timeframe, we see that the pair is trading around the 50% Fibonacci level. To top it off, Stochastic is sporting a bullish divergence, making lower lows while price is making higher lows. Don’t get too excited buying the pair though. A strong close below 1.3320 could mean that we may soon see EUR/USD tumble down to 1.3250.
Will the euro pull off an R. Kelly and bounce-bounce, bounce-bounce off .8600 where it previously found support and resistance? I would wait for some confirmation signals first before buying EUR/GBP if I were you. If the major psychological handle doesn’t hold, we could see the pair trade all the way down to .8500.
Like trading the comdolls? On the daily timeframe, we see that USD/CAD is also currently trading around a previous support and resistance level. Will USD/CAD find support? If you think so, watch out for reversal candles around the 1.0300 handle. But if you plan on shorting the pair, watch out for a close below the previous low at around 1.0240 as this could signal a bigger sell-off.
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.