First up for today is this sweet trend play on CAD/JPY. The Loonie is having trouble breaking above the 93.00 psychological handle, probably because it’s right smack at a mid-channel and 200 SMA resistance the 1-hour time frame. Not only that, but Stochastic is also in the overbought territory. Think the bears will take it back down to the 92.50 area? If countertrend trades are not your thing, you could also wait for a few bearish candlesticks to confirm a bounce if you’re not too sure about buying the yen against the Loonie.
I spy with my Ray-B-covered eyes an ascending triangle in the making! GBP/JPY just can’t break above the 173.00 area on the 4-hour chart. But judging from the higher lows that we’re seeing, it won’t be long before the level is tested again. Don’t get too excited over an upside breakout though. If you’ve read the School of Pipsology, then you’ll know that ascending triangles could also break to the downside, sometimes by as much as the height of the triangle. Read up on trading triangles if you haven’t heard of it!
Last one up for today is potential position trade. It seems that the Kiwi bulls aren’t waiting for a retest of the broken range support and 50% Fib on the daily chart. Instead, the pair looks like it has found resistance somewhere between the 38.2% and 50% Fib as well as the 200 SMA. On top of that, Stochastic is also in the overbought region. A stop just above the Fib levels could still get you a good risk ratio if you think that the pound is headed for its new lows against the Kiwi.
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.