If you missed EUR/USD’s selloff yesterday, then here’s another chance for you. The pair might go back to the 1.0750 pyschological handle, which has served as a solid support in late March and is currently lining up with some serious Fib levels on the 1-hour time frame. You could wait for the euro to reach 1.0750 to 1.0800 before you jump in, but also keep an eye out for shallower retracements in case the bears get hungry and refuse to allow the pair to climb to the Fib levels.
Here’s a countertrend trade for ya! If you’re one of them euro bulls, then you can take advantage of EUR/JPY’s support near the 128.50 area. The pair encountered support at the level, which isn’t surprising since it’s also lining up with a falling channel support on the 1-hour chart. You can probably ride a move to the 129.50 area and place your stop just below the channel before the sellers start to pounce again. Be careful with trading this one though! Watch out for a potential break below the support in case the euro bears gain momentum today.
Last but definitely not the least is this slow and steady range play on CAD/JPY. The pair is finding support a the 95.80 area, which is a mid-range support on the 4-hour time frame. Will this mean another trip to the 96.50 zone? You can get a couple of pips if you place a tight stop below the mid-range support, but keep a close eye on this one in case the yen buyers or Loonie sellers step in over the next couple of hours.
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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.