Because one of my readers yesterday requested an update on EUR/USD, I decided to actually do one! As you can see on EUR/USD’s daily chart, a key falling trend line seems to be holding the pair down. With the Stochastic showing the conditions are almost overbought and the appearance of two spinning tops, this could be a good time to jump in short! But please, do be careful… While spinning tops signal exhaustion and indecision, they do not confirm a down move.
Now, let’s move over to EUR/CHF. EUR/CHF seems to be showing the same bearish signals as a shooting star candlestick pattern formed right on the 50% Fib and previously broken support. Since yesterday’s candle was a bearish one, we could see the pair head to new lows. Watch whether support at the 1.1500 major psychological handle would holds folks! A break of 1.1500 will mean new lows for the pair!
If you’re not a fan of long-term time frames, don’t worry because I have something for you too. A look at USD/JPY’s hourly chart will reveal that the pair has been trading in a very tight falling trend channel for quite a long time now. Judging from how the top of the channel has held, the pair is poised to make new lows. If you’re short on the pair, look to take profit at the bottom of the channel, somewhere around the 77.60 region.
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!