EUR/JPY: 4-hour
First up is a potential 61.8% Fib support on EUR/JPY‘s 4-hour chart. The pair bounced from 100.00, a major psychological handle and a previous support and resistance level for the pair. Stochastic is also currently on the bulls’ side right now, so you might want to think fast if you want to trade this pair. Remember to place your stops though, because we never know when the euro bears will strike next!
GBP/USD: 4-hour
Next up is a lil’ somethin’ for the pound bulls. GBP/USD is sporting what looks like a bullish rectangle as it stalls just below the 1.5750 handle on the 4-hour chart. The School of Pipsology says that rectangles are usually signs of continuation of a trend, but you should also watch out in case the 1.5750 area is too hot for the bulls to handle. How about you? Do you think the rectangle will break to the upside today?
NZD/USD: Daily
Last but definitely not the least is a simple resistance setup on NZD/USD‘s daily chart. As Happy Pip reminded me yesterday, Kiwi is playing around the .8250 handle, a major support and resistance level for the pair. Stochastic is still chillin’ in overbought area for now, but make sure you stick around in case it starts leaving the overbought zone!
Before you get carried away with all these chart patterns, remember that technical analysis is only half the story.
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.
