If you’re a strong believer in those hard, psychological levels, then check out this chart on USD/JPY! After a brief pause, USD/JPY has surged back up and is now testing the 90.00 psychological handle. With Stochastic now deep in overbought territory, will sellers jump back in soon? Wait for solid bearish candle as a sign that price action was rejected at resistance. On the flip side, a candle close above 90.00 could open the floodgates for more buying power!
You into breakouts, playa? Take a look at this trend line break on Lady Cable! After holding steadily over the past 8 months, GBP/USD is now trading below a major rising trend line. If selling pressure continues, we may see a test of former support around 1.5830 soon. If that fails to hold, don’t be surprised if we see the bears push price all the way down to 1.5500!
Lastly, here’s a look at Huck’s favorite pair, EUR/USD. After initially being rejected by the 1.3400 handle, the bulls are at it again, as EUR/USD is making another run at the major psychological handle. The question is, will it hold and serve as a double top? Or will buying momentum break through? I suggest waiting for some candlestick confirmation before establishing a position on this pair!
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.