First up, here’s AUD/JPY on the 4-hour chart. Right now, the pair is trading around its previous high and testing the 38.2% Fibonacci retracement level for support. Do you think it will hold? If you do, just be careful not to get too excited. Be on your toes for a strong break below the 97.00 area as it could mean that the pair could be headed lower, maybe all the way down to 93.50.
Chillin’ like ice cream fillin’! Yup, that’s what EUR/GBP did all throughout yesterday’s trading. But from what I’ve heard, it would seem that there are a few catalysts scheduled today that could spark a breakout on the pair. If you’re feeling bullish for the euro, waiting for a strong candle to close above .8500 would be a good idea. However, if you feel like rooting for the pound, keep your fingers crossed for a convincing break below .8470.
Do you see what I see? USD/CHF looks like it’s testing the bottom of the channel for support. If there are enough bulls in the market, we could see the pair rally all the way up to .9500. However, if there’s not enough left of ’em to fuel the dollar, we could see price make a new low.
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.