What better way to start your week than by taking a setup as sexy as this one? On CAD/JPY’s 4-hour chart I’m seeing a potential support at the 61.8% Fib, which is not only a minor psychological level, but was also a previous support and resistance area for the pair! Of course, the bullish divergence and oversold Stochastic signal isn’t hurting the trade idea either. You can probably aim for the swing high on this one, and place your stop loss somewhere below the Fibs.
Next up for today is a sweet potential retracement setup on the 1-hour chart. USD/CHF seems like it’s recovering from its low last week, and Stochastic is also showing signs of leaving the oversold region. The question is, will it reach a potential resistance near the .9200 area? If it reaches the level and Stochastic is in the overbought region at the time, then it’s probably a good idea to short.
Looking for another opportunity to short the euro? You might want to take a look at this one. EUR/GBP seems to be consolidating at the top of a rising channel on the 1-hour chart, and it looks like Stochastic is also about to go down. A stop above the channel is a good idea if you’re shorting this one, especially if you’re aiming for the bottom of the channel just above the .8350 area.
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.