If you think that the yen still has room to weaken, then take a look at this sweet setup! USD/JPY is headed towards the big 90.00 handle, which lines up nicely with not only the 38.2% Fib, but also a former resistance level on the 1-hour time frame. A stop below the Fib levels is a good trade idea if you’re planning on buying at the 90.00 major psychological handle.
Here’s one for the euro junkies! A consolidation on EUR/USD‘s 1-hour chart is telling us that the euro bulls and bears are hustling it out at the 1.3500 psychological area. Are we seeing a triangle that could push the pair in either direction or is it a bullish pennant that could lead to an upside breakout? Read up on trading breakouts if you don’t have a trading plan for this setup yet!
Last up for today is a nice trend play for the comdoll fans. AUD/USD just popped up a doji, which just happens to line up with the rising trend line on the daily chart. It also doesn’t hurt that Stochastic is nearly in the oversold region. If you’re planning to buy the Aussie, you could wait for a morning star pattern or wait for Stochastic to head back up.
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.