Don’t look now, but it looks like Guppy testing resistance on the 4-hour timeframe! Actually, with the pair making higher highs and having been rejected around 128.20 a few times, it looks like it has formed an ascending triangle. Now don’t get too excited buying the pair. It might be better if you wait for a strong break above the resistance level before pulling the trigger.
Aww, snap! Is that a potential head and shoulders pattern on EUR/JPY? It looks like it is! Well, that is if the pair finds resistance somewhere around 103.80-104.00. I know that Stochastic already indicates overbought conditions but I’d wait for reversal candlesticks for confirmation if I were you. Who knows, there may still be enough bulls in the market to push the pair back up to 104.50.
Finally, feast your eyes on EUR/GBP! After breaking support at the trend line yesterday, it would seem like the bear rally is already running out of steam with all those reversal candlesticks that materialized and Stochastic being in the oversold territory. But don’t worry! Using the Fibonacci retracement tool, it looks like we could soon see the pair pull back to around the 50% level and test the trend line for resistance. If there’s still enough demand for the pound around the area, we could see EUR/GBP make a new low!
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.