Cable‘s price action might look choppy on the lower time frames but the 4-hour chart sure brings a new perspective! The pair is trading along a rising channel and is currently finding a mid-channel support near the 38.2% Fib. If Stochastic leaves the oversold area before touching the channel bottom then you could always place your stop below the lower Fib levels and aim for the top of the channel.
If you’re planning on selling the yen, then this setup is perfect for you! AUD/JPY is hanging at the 100.00 major psychological level, which lines up neatly with a former resistance area on the 4-hour chart. And is that a bullish divergence I see? Why, yes it is! And if that’s not hot enough for you, then you should also note that the 100.00 handle is near the 61.8% Fib retracement level.
Heads up, Loonie bears – USD/CAD is headed for a roof! The pair is only a couple of pips away from the 1.0330 zone, which is not only a former resistance area but is also near a possible support-turned-resistance trend line. Be careful though, as the resistance could only hold for a while, especially if the comdoll selloff continues throughout the week.
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.