First up for today is a possible swing trade setup on EUR/USD‘s 4-hour chart. The pair recently bounced from the 1.3400 major psychological handle and it looks like it’s heading towards the former support area at 1.3300. Have the bulls truly run out of steam? Or are they simply taking a breather before pushing for new highs? We’ll just have to wait and see!
Brace yourself, range traders! AUD/USD just bounced from a major resistance level and it is currently making its way lower. With the Stochastic pointing downwards, it seems that the bears still have a lot of strength left. If selling pressure continues, we could see the pair fall to the 1.0200 major psychological level before encountering support.
If you’ve been riding the uptrend on USD/JPY, then consider taking profit soon! As you can see, USD/JPY just found resistance at the top of the widening formation. In addition, the Stochastic shows that the pair has been overbought for quite some time now. Price could pullback soon, and drop back down to the 88.45 area, which is at the lower boundary of the widening formation.
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.