Let’s kick off the week with the most widely traded pair in the world, EURUSD. It appears that pair has finally retraced some of its gains last Friday. With stochastics showing that conditions are deeply oversold and price unable to close below the resistance-turned-support region, will we see buyers come back and take EURUSD higher? Hah, it might be too early to tell, but the bias is certainly for a move towards former highs at 1.3030. However, if a candle manages to convincingly close below 1.3030 support, we could see a retest of 1.2960.
Who wants to lock in pips with USDCAD? The pair recently rebounded from the 38% Fibonacci retracement level on the 1-hour chart, but the last two candles are hinting a resistance near 1.0350. Will the pair bounce around a tight range, or will it make new highs today? A stop loss below the 38% might be a good spot for the bulls, while the 50% Fib looks mighty fine for a profit level for the bears. Keep an eye on this one!
Unlike the pair above, this one is a tossup despite its bounce on the 38% Fib. The pair might have rejected the fib a few candles ago, but the possible reversal candles showed up early in the game. The pair’s rise stopped at the middle of the fib and the previous high! Too bad the stochastics on the middle ground isn’t any help this time. A figure near 1.3850 can be a good honey pot to the bears, while the previous high is a great target for the bulls. Happy trading!