Someone holler at Huck because this EUR/USD retracement is too good to miss. The pair encountered resistance at the 1.3340 area and is now back to the 1.1235 levels. What makes this setup interesting is that it lines up with not only Fib retracement levels, but also the 100 SMA and previous resistance on the 1-hour time frame. The cherry on top of this setup is an oversold Stochastic signal. Think the euro is ready to bounce higher? A long trade at current levels is a good idea if you’re one of them euro bulls. Of course, you could also wait for a break below the support levels if you believe that the dollar will gain ground against the euro.
Trend traders huddle up! GBP/USD is about to hit the 1.4450 area, which is right smack at a mid-channel support on the 1-hour chart. What’s more, both the 100 and 200 SMAs are right around the minor psychological area. A long trade at the mid-channel zone could get you some pips, especially if you place your stops just below the support levels. Just make sure you make room for contingencies in your trading plans, aight?
Last one up for today is a nice range on USD/JPY’s 1-hour chart. The pair is fast approaching the 112.75 area, which is right in the middle of its short-term range. With Stochastic also in the overbought territory, is this a sign that USD/JPY is about to hit a resistance? Read up on trading in ranging conditions if you haven’t tried it yet!
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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.