If you’re into trading cross-currency pairs like my homie Cyclopip is, then pay attention to a possible falling wedge action on EUR/JPY‘s 4-hour chart. It looks like the euro bulls are taking a breather at the 110.50 handle, but remember that a falling wedge could signal a continuation of a trend. Watch your long trades closely though, as Stochastic is in the overbought region and the 110.50 could still provide resistance for the pair.
My next setup is something that could make my girl Happy Pip extend her winning streak. On AUD/USD‘s 1-hour chart is a simple rising trendline action, which could still play out over the next couple of hours if the 1.0600 handle holds as a support area. Stochastic isn’t giving any signal right now, so keep your stop losses tight for this setup, aight?
Somebody call Huck because this setup is too hot to miss! On USD/CHF‘s 1-hour chart is a potential support play at the .9100 handle. Not only that, there’s also a bullish divergence and an oversold Stochastic signal to sweeten the deal! A stop below the previous low is safe enough if you’re buying the pair, but you can also wait for a break below .9100 if you’re bearish on the scrilla.
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.