If you’re still waiting to short the euro, then this setup is for you! On EUR/USD‘s daily chart is a potential resistance at the Fibonacci retracement levels. Not only is it near a previous support zone, but the area is also just below the 1.3000 major psychological handle. Stochastic just left the oversold zone though, so you might want to let this play out for a while.
After breaking above the triangle that I pointed out yesterday, Cable is once again consolidating at a possible bullish pennant. If you haven’t done your reading at the School of Pipsology, then you should know that pennants usually signal continuation for a trend. Are the pound bulls ready for another push? Make sure you have your stop losses ready if you’re planning on day trading this setup!
Last up for today is another Fib retracement setup, this time on USD/CHF. If the pair breaks below its current levels (.9550), then the next possible support area is around .9300. The level has not only served as a good support and resistance area in the past, but it’s also near the 61.8% Fib retracement. Do you think that the pair will fall all the way to the .9300 handle? Give a holla, brotha!
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.