If you’re into break-and-retest setups, then this is for you! USD/CAD had broken above its 50-pip range on the 1-hour chart, and now it looks set for a retest of the broken resistance. Pay close attention to this level, as it’s also close to a 38.2% Fib. It’s also a good idea to wait for a Stochastic signal or a couple of bullish candlesticks if you’re thinking of buying the dollar at the area. Can’t be too careful, right?
Look at this baby locked in a sweet rising channel! EUR/USD has just encountered resistance above the 1.3600 handle, but that doesn’t mean that a reversal is in the works. In fact, the pair could find support just above 1.3550, a level close to a mid-channel area. You could add to your positions here if you’re already in a long euro trade, but you could also wait for a test of the channel support if you’re not too sure about buying the pair early.
Somebody holler at Cyclopip because GBP/JPY is about to get more interesting! The GBP/JPY bulls look like they’re taking a breather after blasting the pair above the 166.00 handle yesterday. If you’re like my buddy Cyclopip and you think that the pound has room for more gains, then loading up at a possible retracement near a Fib, former resistance, and trend line area would be a good idea. Just make sure that your risk ratios are still in your favor, aight?
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.