If you’re looking to short the euro, then this setup is for you! EUR/USD is hanging at a possible Fib retracement level on the 4-hour chart. Not only that, but a bearish divergence is also supporting a short trade! A stop loss above the 50% Fib and a profit target near the previous lows is a good idea if you’re trading the 38.2% Fib retracement.
Want to buy the scrilla but you don’t want to touch the euro? No problem! USD/CHF slipped after sporting a bearish divergence yesterday, but now it’s finding support at the rising trend line and 38.2% Fib on the 4-hour chart. Keep a close eye on this one in case the dollar bulls attack today!
Think the risk rally will continue today? If you just said yes, then you might want to look at this possible range support on NZD/USD‘s daily chart. The pair found support at the .7850 handle yesterday and judging from the almost oversold Stochastic signal, we’re about to see Kiwi strength. But be careful, brothas! Stochastic hasn’t reached the oversold zone just yet!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.