Let’s kick off today’s trading day with a look at the market’s favorite pair, EUR/USD! A look at the pair’s 4-hour chart will show that it has been able to recuperate some of its losses from last week. But with the pair finding resistance at the 38.2% Fibonacci retracement level and the Stochastic showing overbought conditions, will we continue to see the pair rise? If you’re part of the bull camp, this may be a good chance to reevaluate your position and consider flipping sides. Keep an eye out for bearish reversal candlestick patterns folks, as they could mean that the bears are starting to regain control of the pair!
Up next is USD/CAD. It appears that USD/CAD has finally ended its 200-pip rally from .9800 as it was unable to pierce through parity. With the Stochastic pointing down and parity holding as strong resistance, will we see the pair drop back down again? It is likely… but don’t take my word for it!
Finally, let’s head on over to Cable. Cable has been on a downtrend as of late, bouncing neatly within a clear falling channel. If you’re part of the bear camp, please watch this pair carefully! Selling whenever the pair touches the top of the channel could yield some nice pips. But be careful though… The 1.5700 major psychological handle could serve as strong support and catapult the pair upwards!
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. Check him out, playas!