Here’s somethin’ for the pound bears! GBP/USD is heading right for the 1.5280 area, which just happens to line up with the 50% Fib and a former support and resistance level. Stochastic is about to hit the overbought region, too, so you might want to watch out for any divergences that might form. A stop above the Fibs is a good idea if you think that the pair will make new lows.
I know y’all have been watching USD/CHF‘s daily chart, so here’s an update for ya! The .9750 minor psychological area was a good place to short as a divergence popped up. The pair is currently hanging at the mid-range support though, which places the ball in both the bulls and bears’ court. The bears could wait for a bit of retracement while waiting to see if the divergence will gain steam, while the bulls could place stop losses below the previous candle’s low and aim for the range’s resistance.
Watching a weekly chart is worth the wait if a setup is this hot! AUD/JPY had just bounced from the 61.8% Fib and is now edging higher in the chart. Of course, it doesn’t hurt the bulls’ motivation that there’s also a bullish divergence and a potential rising trend line support waiting to play out. Be careful in trading this setup, brothas! Remember that you’ll be dealing with a yen cross 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.