If you’re a euro bull, this setup might just be for you! After breaking through the 1.3300 handle last week, the pair has stalled, as it appears to be losing buying momentum. For those of you looking to hop on the long bandwagon, make sure you keep your eyes peeled on the 1.3300 handle, as it could prove to be a solid resistance-turned-support zone. But before you put on your orders, you might wanna consider waiting for more signals, like some indecision candlesticks, before loading up on your buy positions.
Is it time for the Aussie to go down under? After all, it seems to be having trouble breaking through the resistance area of 1.0580-1.0600! Now that Stochastic is crossing over out of overbought conditions, we might see sellers strut their goods and hit the market place. Look out for bearish marubozu candles, as those could signal that sellers are back in control.
Lastly, here’s a setup for the courageous. GBP/JPY has been on an absolute tear, churning and burning up the charts like no tomorrow. Take note though, that while price action has been forming new highs, Stochastic has been deep in overbought territory. Could some bearish divergence be in the works? With a doji forming on the daily chart, it seems that buyers have run out of steam as well. But before you bet the farm on a short trade, you’d best be served waiting for more confirmation that a reversal is truly in the works.
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.