The first chart that I want to look at today is the most traded currency pair of all: EUR/USD! If you’re part of the bull camp, then you must be swimming in pips now with the pair’s third straight day of winning yesterday! But with price about to hit a major trend line resistance and psychological level at 1.4500, will the rally finally come to a stop? If you see bearish reversal candlestick patterns at that level, it could be the confirmation you need to take profit and skedaddle!
Up next is a lovely setup for USD/JPY. Similar to EUR/USD, the pair seems to be approaching a key level. If you like believe in the concept “buy low, sell high,” then this setup is perfect for you. Keep a close eye on price action at the rising trend line support, as it could be a good level to consider buying.
Lastly, let’s scoot over to USD/CAD. While the last two pairs I talked about potential bounces, USD/CAD actually did the opposite, as the pair just broke a very significant support level. If you’re bearish on the pair, this could be another confirmation that the pair is headed down. Since there is no major support level nearby, the pair looks like it has a lot more room to fall.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.