I’ll start off with a very volatile pair: EUR/JPY. As you can see, I’ve pulled out the long-term chart of the pair and it seems that EUR/JPY is about to test an important area of interest. That being said, we could see a major battle between the buyers and the sellers due to the appearance of conflicting signals. On the one hand, the bulls have got the medium-trend going for them. In the last six out of seven days, the pair has gained. On the other hand, the bears have the support-turned-resistance at 102.50 and the bearish divergence that has formed.
Bullish on AUD/USD? You’re in luck! It looks like a flag is starting to form on the 1-hour chart and is hinting on a strong move up. Now, now, don’t pull the trigger yet as the Stochastic indicates that the pair is overbought. Waiting for a strong bullish candle close above the consolidation could be a good idea, as it would confirm the pair’s bullishness.
The last chart for today is the 1-hour chart of USD/CHF. After the strong move down seen a couple of hours ago, it seems that the pair is starting to retrace. But with the 38.2% Fibonacci retracement level fast approaching, the bears could find a reason to sell the pair again. Watch price action around .9250 closely traders, as it could be the level where the bears start selling to take the pair lower again!
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.