There ain’t no better way to end your week than with a sweet little trend play. You’re in luck because it’s on our favorite pair, too! After topping out just under 1.3300, EUR/USD has been trending down and it has formed a falling channel in the process. If you want to get a piece of this action, you may want to consider shorting this pair right now. Price is currently flirting with a falling trend line, which just so happens to line up with the Fibs and the 1.3200 major psychological handle. It’s as good a potential turning point as any, don’t you think?
Say goodbye to dandruff because we’ve got an inverse head and shoulders pattern in the works on USD/CHF! The daily chart shows that the pair has been hesitating at the .9100 handle, where the left shoulder lies. If sellers are unable to break below this level, we may see price rally up to the neckline at .9300. There we’ll see if buyers can break the neckline to forge a new high. Keep your eyes on this pair, homeboys!
Last but not least is this retracement play on USD/JPY. If you think the pair has more losses in store, then this might be the setup for you! After yesterday’s huge slide, sellers have been taking a breather, allowing USD/JPY to retrace its footsteps. The 83.00 major psychological level was an area of interest in the past, and it looks like it may draw the spotlight once again. It’s a tempting place to short since it lines up really well with the 38.2% Fib level. But you might wanna play it safe by waiting for confirmation from candlesticks before you commit to a position. Good luck and happy trading!
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.