Think USD/JPY already broke its range on the daily chart? Don’t be so sure! Although the pair is already trading 10 pips below the 77.00 handle, a bullish divergence and an oversold Stochastic signal are supporting a bullish trade. Stochastic still hasn’t crossed though, so there is still room for the pair to fall before we see any signs of a bounce. The 78.25 handle might be a good target if you’re willing to buy the pair.
If you missed trading the USD/CAD symmetrical triangle setup I pointed out yesterday, then you might want to take a look at the ascending triangle on AUD/USD‘s 4-hour chart. The pair is about to test the 1.0300 handle near the triangle’s resistance, but an overbought Stochastic signal is supporting a bearish trade. Will the Aussie bulls hustle enough muscle to break through 1.0300 today, or will the bears drag the pair back to the 1.0100 trendline support?
My last setup for today is a classic psychological support with divergence combo. On GBP/JPY‘s 4-hour chart we saw the pair bounce back from the 119.00 handle, and it looks like Stochastic is also about to take off from the oversold region. Not only that, there’s also a bullish divergence to support the trade idea! A stop below the 119.00 support might be a good idea if you’re planning on going long on the pair while the bears can also wait for a clean break of the support handle.
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.