Careful, euro bears! EUR/JPY is currently finding support at the bottom of the range on its 1-hour forex time frame, with price sitting right on the 132.50 minor psychological level. At the same time, stochastic is moving north, indicating that bulls are about to take over. If that happens, EUR/JPY could head back to the top of its range at the 134.00 major psychological mark. Just remember that a downside break could still be possible so make sure you set those stops right!
If you’re bullish on the euro, then you might like this trend setup on EUR/GBP’s 1-hour forex chart. As you can see, the pair is forming a rising channel with its higher lows and higher highs, and price looks ready to test the bottom of the channel again. EUR/GBP is stalling around the mid-channel area of interest right now though and stochastic is suggesting that a bounce might take place soon. If so, the pair could make a move towards the top of the channel near the .7600 major psychological resistance.
Who’s up for a countertrend trade? EUR/NZD is also moving inside a rising channel on its 1-hour time frame but is currently testing the resistance around the 1.5600 major psychological mark. If this area keeps gains in check, price could head back to the bottom of the channel around the 1.5200 major psychological level or at least until the middle of the range around 1.5400. Stochastic is moving up from the oversold area though, which means that euro bulls are gaining strength and might have enough energy to push for an upside break.
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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.