Dollar bulls watch out! USD/JPY might have recovered from its steep losses from late last week but it still hasn’t convincingly broken above the 105.00 handle. In fact, the previous resistance area is currently lining up nicely with the top of a rising channel!
Check out this sweet trend setup! EUR/CAD is currently testing the 1.4900 major psychological area. What makes this setup even sweeter is that it’s also near a bottom of a rising channel. Last but not the least, Stochastic has just left the oversold territory. Think this pair is headed higher? A stop just below the channel could get you a sweet risk ratio if you think that this baby is headed for the 1.5000 area.
Somebody holler at Happy Pip and point out this retracement setup! NZD/USD is about to reach the .8300 psychological handle, which has served as a pretty big resistance late last year. It could soon find support at the level, as it’s also near a 61.8% Fib AND a rising trend line. Of course, it also doesn’t hurt that Stochastic is near the oversold area. What a treat for the bulls!
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.