How would you like to play this setup on USD/JPY? It’s slowly approaching the 93.00 major psychological handle, which served as a strong support level last week. With Stochastic already showing a bearish divergence, it may just be a matter of time before sellers jump back in and drag the pair down to 91.20.
Let’s see if we can make the trend our friend again on EUR/CHF! Price is slowly inching closer to the falling trend line, homies! And because it just so happens to line up almost perfectly with the 1.2260 support level, there’s a good chance we could see market interest if price retests this area. A bounce off this confluence zone could be you best chance to catch a piece of EUR/CHF’s downtrend, so stay on your toes and wait for further confirmation from candlesticks!
Last but certainly not least is this retracement setup on GBP/JPY. It looks just about ripe for the picking, with Stochastic showing a bearish divergence and price finding resistance at the falling trend line. Just be sure to keep your risk in check if you plan on shorting this pair… as sweet as this setup is, you never know what the market’s gonna do!
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.