First up is a nice downtrend play on AUD/JPY. The pair is currently lollygagging at the 75.80 area, which lines up with a mid-channel resistance on the 4-hour time frame. You can start shorting at current levels and place your stops above the channel if you’re one of them Aussie bears. On the other hand, you could also wait for a retest of the channel resistance near 76.50 if you think that the yen bulls could still push the pair to the 100 and 200 SMA area before the bears regain their mojo.
Here’s one for the breakout junkies out there! USD/CAD is testing the 1.3050 minor psychological handle, which is right smack at a falling trend line resistance that makes up the top of a symmetrical triangle. If you’ve read the School of Pipsology, then you’ll know that triangles like these can break in either direction. Right now stochastic is siding with the bears with an almost overbought signal. Can the dollar bulls push for an upside breakout today? Or will the bears step in and bring the pair back safely inside the triangle? Keep close tabs on this one!
Breakout alert! Last week’s crazy price action brought EUR/USD down to the 1.1000 levels, which is already below a rising trend line that hadn’t been broken since November last year. Are we seeing a breakout or a fakeout? A short trade after a bit of retracement could get you decent pips if you think that the euro will continue on its merry way down. Meanwhile, a long trade at current levels is also a good idea if you believe that the 200 SMA would hold and that EUR/USD will go back to its uptrend soon.
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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.