Euro bulls watch out! EUR/JPY is lollygagging at the 133.00 area, which is right smack at the mid-range level on the 4-hour chart. What’s more, Stochastic has just hit the overbought zone! You can wait for reversal candlesticks with your stop losses above last week’s highs if you think that this baby will hit the range support. On the other hand, you can also wait for a clear break above 133.00 and aim for the range resistance at 135.00 if you’re one of them euro bulls.
Is the dollar in for losses this week? USD/CHF is having trouble breaking above the .92000 major psychological handle. This isn’t surprising given that the level has served as a solid support and is currently a 61.8% Fib on the daily chart. I’ll have to check with Pip Diddy regarding dollar sentiment, but for now you gotta make sure you watch this one closely in case it turns to the downside!
I hope you’re up for some comdoll trades because this setup is too hot to ignore! NZD/USD encountered resistance at the .8400 handle and is now testing what looks like a head and shoulders neckline around the .8250 zone. A break below the support could give way to a 300-pip-ish move (the length between the head and the neckline). Of course, you also gotta watch for fakeouts in case the bulls still have muscle to hustle!
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.