Awww, snap! Don’t look now but it looks like support at the 38.2% Fibonacci retracement level on EUR/JPY held! On top of that, Stochastic indicates that the pair is already oversold. The question is, will the euro be able to sustain its momentum? If there are enough bulls in the market, I wouldn’t be surprised to see the pair rally back up to its highs above 103.00. If not, we could see a deeper pull back on EUR/JPY possibly to 97.80.
EUR/USD has been trading in a downward channel for the past couple of weeks. Looking at the hourly timeframe, it would seem that the pair is now testing resistance at the top of it! Should resistance hold, EUR/USD could trade lower to 1.2800. However, keep in mind that Stochastic still indicates upward momentum (the lines just crossed over). So be careful! Who knows, the euro could still hustle some muscle to rally up to 1.3000.
Here’s another Fib play for you! EUR/GBP is now testing resistance at the 38.2% Fibonacci level and Stochastic also indicates overbought conditions. Not only that! The area also coincides with the broken trend line. I know the setup might be a tempting short for some of you, but just remember to be on your toes for strong bullish candles. A strong break above .8000 could mean that the pair would soon trade around .8100.
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.