I spy with my Ray-B-covered eyes a possible bounce in the making! EUR/JPY is getting rejected at the 112.50 minor psychological handle, which is right smack at strong support from last week. Not only that, but the rising Stochastic signal is signaling a bullish divergence on the 1-hour time frame. Think the euro will gain some ground against the yen today? Yen crosses tend to be more volatile than the majors, so make sure you leave enough room for volatility in your trading plan!
Here’s one for pullback warriors! GBP/CHF looks like it’s headed for 1.4000, a level that had served as support in early February. This time around the major psychological number also lines up with a 50% Fib and 200 SMA on the 1-hour chart. A short at the Fib levels could get you a good reward-to-risk ratio if you think that the pound will reach new lows against the franc. The pair still have some way to go before reaching the area, so you’ll have time to refine your trading strategy. Make sure you consider every possible scenario!
Here’s another one for trend traders! EUR/GBP is having trouble breaking below the .7800 area, which is where the 100 SMA is on the 4-hour time frame. Stochastic is also on the bulls’ side with an almost oversold signal. A long trade at current levels could make for a good trade, but you could also wait for a break below the 100 and 200 SMAs if you believe that the euro will see some more losses against the pound.
Forex Chart Settings:
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.