Awww, snap! Zoom out to the weekly timeframe of AUD/JPY and feast your eyes on this beauty! The pair is now trading above the 88.00 handle and testing resistance around the area. Keep tabs on it! Should reversal candlesticks materialize, it could mean that AUD/JPY would soon drop to the bottom of the range at around 75.00. Now, you wouldn’t want to miss out on a potential 500-pip move, would you?
You ready to show the pound some love? Err, looking at the 4-hour chart of GBP/USD you may want to wait a while. After the pair’s recent rally, it looks like the bulls are priming for a short break. For one, Stochastic is still not in the oversold area and is actually indicating downward momentum. We could see price pull back between the 50% and 61.8% Fibonnacci retracement levels and test the rising trend line too. Then again, if support at the 38.2% level holds, GBP/USD could skyrocket back up to 1.6300.
Last but certainly not the least, here’s EUR/JPY on the hourly timeframe, sporting what looks like a rising wedge! If you’ve been to the School of Pipsology, you would know that this chart pattern usually signals a reversal. So if I were you, I’d be on my toes for a strong close below 109.00 as it could mean that the pair would soon drop to around 107. Meanwhile, a break above yesterday’s high at 109.50 could signal a rally up to 110.00.
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.