My, my, my… look who’s getting flirty — EUR/USD! The pair has been flirting with a rising trend line over the past few hours, and it just so happens that this trend line falls right smack in the middle of Fib territory. Could this be a sign that the pair is getting ready to stage another bull run? Maybe! But to be safe, it’s best that you wait for confirmation from candlestick patterns.
If trend plays don’t tickle your fancy, maybe the range action on EUR/JPY will! This baby has been bouncing up and down between 98.75 and 98.00 for a while now, and it has established solid resistance and support levels in the process. Don’t think the bull camp has the guts to break above 98.75? You may want to consider selling at the top of the range. On the other hand, if you think the pair is long overdue for a breakout, then going long after price closes above 98.75 may be the trade for you.
How about this for a long-term trade? The 1.2200 handle presents a potential resistance level not just because it’s a major psychological handle, but also because it was once a major support level and falls within the correction zone. And get this – Stochastic is already deep in overbought territory and showing a bearish divergence! Thinking of selling this sucker? Be on the lookout for reversal signs around 1.2200.
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.