Missed that massive drop by EUR/JPY? Don’t fret! You might still have a chance to short at a retracement if the pair makes a pullback today. On the 1-hour time frame, the 61.8% Fibonacci retracement level lines up neatly with a former support level at 122.85. Stochastic is making its way out of the oversold region, which suggests that euro bulls have enough energy to push this pair north. Make sure you wait for the oscillator to reach the overbought zone if you’re planning on shorting soon!
It looks like USD/CHF’s downtrend is still intact as a falling channel just formed on the 4-hour time frame. However, the pair seems to be testing the top of the channel, undecided whether to break to the upside or head back south. Stochastic hasn’t quite reached the overbought region yet, which means that dollar bulls could push for a breakout. The .9300 handle is holding like a boss for now though so if you’re thinking of selling USD/CHF, you might want to set your stops above this psychological resistance level.
Now here’s a potential swing trade setup for y’all! AUD/USD has been selling off strongly lately but it looks like it could soon find support just above the 1.0150 minor psychological level, which has held in the past. Stochastic made higher lows while price drew lower lows, forming a bullish divergence and suggesting that a bounce could be in the cards. If that happens, the pair could make its way back to the top of the range around the 1.0600 major psychological resistance.
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.