For those who are looking at the consolidation in EUR/USD‘s 1-hour chart, here’s a zoomed-out chart for ya. If the pair encounters resistance at the 1.3400 area and you’re still bullish on the euro, then you could wait for a possible pullback just below 1.3300 where the 50% Fib is lining up nicely with a former resistance area. Be careful though, as Stochastic is chillin’ in the overbought region and might influence the pair to break the possible Fib support!
Remember the falling channel that I pointed out yesterday? Well, it looks like AUD/USD is sporting one too! The pair is fast approaching the 1.0770 handle, which is near the top of the channel and one of the major levels that Happy Pip pointed out earlier this week. Stochastic hasn’t reached the overbought zone just yet, but you might want to watch this one closely in case the resistance and potential bearish divergence play out.
Last one up for this week is a potential resistance-turned-support setup on USD/JPY. The 80.00 handle seems to be holding up well on the 1-hour chart, especially since the area is also near the 38.2% and 50% Fibs. Not only that, Stochastic has also just left the oversold territory! If you’re not sure how to play this setup, read our lesson on combining Fibs with support and resistance!
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.