Watch out, euro bulls! EUR/USD might have trouble sustaining its rally, as a doji has formed right on the 1.3250 minor psychological resistance. This is in line with a former support level, which is in between the 38.2% and 50% Fibs on the 4-hour time frame. Stochastic is in the overbought region as well, hinting that euro bears could pounce soon.
Here’s another potential retracement play on USD/CHF. The pair has been on a steady climb recently, but it appears to have run out of steam. With that, it could pull back to the 61.8% Fibonacci retracement level, which coincides with a former resistance zone. Stochastic is also suggesting a possible turnaround, as it appears ready to climb from the oversold area.
Up, up, here we go! GBP/USD’s uptrend is still intact for now, as the pair just bounced off the bottom of the rising channel on the 4-hour time frame. Cable could be on its way to test the top of the channel again but stochastic seems to be painting a different picture, as the oscillator is signaling that the rally is overdone. Make sure you set your stops right if you’re riding the current trend or planning to catch a breakout!
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.