Don’t look now but USD/JPY is trading closer and closer to its falling trend line. And get this, Stochastic is indicating overbought conditions! If you take a close look, you’ll see that this indicator did a pretty good job of predicting tops in the past, so it may just be a matter of time before price turns south again. If the trend line holds, I’d expect the pair to revisit its former low at around 97.00. On the other hand, a upside breakout could push price back to 100.00.
If you’re not into trends, then maybe this range on USD/CHF is something you’ll like! Price has been contained within a 200-pip range for a little over a month now, but it looks like things could get interesting really soon as the pair is about to approach the top of the horizontal channel. A major bounce-or-break opportunity could arise as price tests resistance at around .9375, so make sure you keep your eyes on this pair.
USD/CAD is less than 100 pips away from the 1.0600 major psychological handle. This level has been holding off buyers since 2010, so there’s a good chance it could act as a major turning point again. But keep in mind that just because it held before doesn’t necessarily mean it will hold again. There’s no such thing as a sure thing in forex, so always practice smart risk management!
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.