Depending on the time frame that you’re looking at, Cable could be testing a neckline of a double top or a possible range support. For now it looks like the bulls are defending the 1.5925 area well with a potential bullish divergence supporting a move higher. If you think that we’re seeing a double top though, then you can wait for a break below the previous support with a potential downside move of about 325 pips (the height of the tops) or more.
If you think that the euro has suffered enough last week, then this one’s for you! The EUR/GBP bears are having trouble breaching the .8450 handle at the same time when Stochastic is about to leave the oversold region. The 4-hour time frame is hinting at a possible rising channel action, where a stop right below the channel support and a target at the .8600 area could yield a good risk ratio.
Here’s a simple retracement play on AUD/JPY! The pair has just bounced from the 50% Fib on the daily chart, which is right around a rising trend line and the 93.50 handle. If you think that the nearly oversold Stochastic is hinting at another upward move, then you might want to consider placing your entries while the Aussie is still near its consolidation levels.
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.