To start off, here’s a simple setup on EUR/USD‘s daily chart. The pair seems to have encountered a resistance between the 38.2% and 50% Fibs, and the bearish divergence, overbought Stochastic signal, and potential evening star pattern are also supporting a bearish trade idea. You can place you stop above the 1.0400 handle and aim for previous lows if you’re bearish on the pair, but you can also wait for the evening star pattern to be invalidated before you consider going long.
Next on the table today is a potential support-turned-resistance trade on GBP/USD‘s 4-hour chart. The pair is struggling to break above the 1.5750 handle at the moment, but something tells me that the pound bulls and bears will decide on a direction soon. The bulls can aim for the previous highs if the pair breaks above 1.5800, while the bears can follow the bearish divergence and almost overbought Stochastic signal and aim for 1.5550 with a tight stop above the 1.5750 resistance.
Nope, you’re not seeing double! Also on AUD/JPY‘s daily chart is a setup not unlike the EUR/USD setup I have today. The pair is reacting nicely to the 61.8% Fib, and it also looks like the falling trendline is holding. And check this – there’s also a bearish divergence and overbought Stochastic signal on the chart! Be careful in shorting though, as a break above the 80.00 handle could boost the pair all the way to the 84.00 area.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.