Check out the perfect storm that’s brewing up on EUR/USD’s daily chart! The pair is fast approaching the 1.3000 handle, which is not only a major psychological level and a former support, but is also a 61.8% Fib retracement area. With Stochastic in the overbought zone, will the euro bears be tempted enough to attack at 1.3000?
Here’s a reversal play for comdoll traders like Happy Pip! USD/CAD is having trouble breaking below the .9700 major psychological handle as it had just formed a tweezer bottom on the daily chart. And unless my Ray-Bs are fogging up, I’m also seeing a bullish divergence in there. A stop below the .9700 level is a good idea if you think that USD/CAD is in for a reversal.
Last on my list today is Guppy‘s rising channel setup on the 4-hour chart. The pair is chillin’ like ice cream fillin’ in the middle of the channel between the 125.00 and 125.50 handles, but it looks like it’s not picking a direction anytime soon. Which way do you think the pair will go? Will it test the channel’s resistance at 126.50 or will it drop to the 124.50 area?
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.