Up, down, up, down, up, down! Which way will this bad boy go this time? EUR/USD‘s been bouncing around the 1.3000 and 1.3100 handles for a while now and it just can’t seem to bust out of its range. However, right now, it’s giving the 1.3100 major psychological handle one hell of a test! If this level gives way, traders might push price back up to 1.3200. But if buyers fail to break this level again, the market’s next stop could be support at 1.3000.
If you’re in the euro bear camp, then this setup might be to your liking! EUR/JPY is now forming a descending channel on the 1-hour camp and is slowly approaching resistance at the top of the channel. Will it break or will it hold? I suggest waiting for Stochastic to hit overbought conditions and for some candlestick confirmation before clicking on that sell button!
Interested in a pullback play? Here’s one on USD/JPY! As you can see, after a strong sell-off, USD/JPY is starting to retrace its steps. With the Stochastic moving out of the oversold territory and pointing up, it looks like price is going for a retest the 98.50 minor psychological level. This level could serve as a good entry point for the bears, as it lines up nicely with the 50% Fib and a broken support level.
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.