Hang tight, fellas! It looks like EUR/JPY’s downtrend is still intact! If you’re thinking of jumping in, then you should have a look at the pair’s 1-hour time frame because there’s a potential retracement play in the works. After breaking below last week’s consolidation, the pair dipped to the 102.50 minor psychological support level. If the pair pulls back, it could encounter resistance around 103.00, which is right at the trend line and former support.
Is cable ready to bounce? A quick look at its daily chart would reveal that the pair is still on an uptrend, with a rising trend line connecting its lows for this year. Stochastic is nearly in the oversold region, suggesting that pound bulls are ready to charge soon. With the 1.6000 major psychological support coinciding with a former resistance level, the rising trend line, and the 61.8% Fibonacci retracement level, watch out for a possible bounce in that area!
If you’re a comdoll nut like Happy Pip, then you might find this Kiwi setup to your liking. The pair just broke below last week’s support level and looks ready for a quick pullback. Well, it’s about time, considering how stochastic is hinting that Kiwi bears need a breather. NZD/USD could retrace until the 50% Fib, which is in line with the former support and the falling trend line connecting the pair’s highs. I’d keep my eyes glued on this one, if I were you!
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.