Uh, oh! Could the pound’s rally against the yen come to an end soon? Stochastic, being in the overbought territory, seems to suggest so. But don’t fret! Using the Fibonacci retracement tool, we see that the pair could find support around its previous high around 132.30 which coincides nicely with the 38.2% Fib level. Heck, if there are still enough bulls in the market, we may not even see a pullback from the pair. A close above yesterday’s high could mean that GBP/JPY is heading to 140.00.
Br-br-breakout trade! If you’re looking to practice playing straddle trades, this setup on USD/CHF is perfect for you! The pair has been consolidating for the past few hours. In fact, it actually looks like it has formed a bearish pennant which could mean that a close around .9150 would signal a rally towards .9000. However, be wary of a close at .9200 as it could indicate that price is on its way to .9270.
Here’s another Fib play for you, cool cats who dig the comdolls like Happy Pip. NZD/USD is currently testing resistance at the top of the rising channel. If it holds, we could see the pair trade lower, pull back to the 38.2% Fib around the middle of the channel, and test its previous resistance. So keep tabs on the .8300 handle! A strong close below it could mean that price would soon trade all the way to the bottom of the channel and maybe even break support there!
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.