Are my shades all fogged up, or is that a rising wedge I spot on EUR/JPY? The pair has been stuck in consolidation mode over the past week. Could we be in for a breakout? Watch out for solid marubozu candle closes above or below the resistance and support lines, as that it could mean the start of a strong move back up to former highs or down south to new lows!
Here’s a setup for some of you longer term playas! Zooming out to the daily chart of GBP/JPY, it seems that a head and shoulders formation could be in the works, with the 61.8% Fib level lining up closely with the first shoulder. For now, your best bet may be to wait for price action to continue its retracement back up the charts before loading up on any short positions.
Could this be the end of the line for USD/CAD’s recent rise? The pair is now approaching its highs from last week but with Stochastic nearing overbought conditions as well, we may just see a double top form. If you’re the patient type, you might wanna wait for some reversal candlesticks to form before going short!
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.