First up is a nice and simple resistance play on USD/CAD‘s 4-hour chart. A break above the 1.0400 major psychological handle could lead to a test of the 1.0430 area, which has served as a solid area of interest since late June. And if that’s not enough to fire up the bears, Stochastic is also on the overbought region! A stop just above the possible resistance area could get you a good risk ratio if you’re eyeing the 1.0300 handle as your profit target.
I spy with my Ray-B-covered eyes a possible rejection at the top of a falling channel! GBP/JPY is hanging around the 152.50 territory, which is right smack at the top of a falling channel and previous resistance area. You could put a tight stop if you want a nice risk ratio on this one, but you could always wait for a couple more bearish candlesticks if you’re not convinced that the pair is going lower anytime soon.
Think EUR/GBP‘s rising trend line is broken? Think again! The bears got rejected around the .8500 area and it looks like it’s headed towards its previous highs. How high do you think can this pair go? Make sure that you read up on position and cross currency trading if you’re not used to holding cross positions for the long haul!
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.