EUR/USD: 1-hour
Say it ain’t so, but I think I see a downward channel on EUR/USD yo! If you’re looking to sell the pair, perhaps waiting for a pull back between the 38.2% and 50% Fibonacci levels to see if the top of the channel holds would be a good idea. Be a good idea to be on your toes for reversal candlesticks to materialize around the area. Who knows, there may still be enough bulls in the market to push the pair back up to 1.2300.
USD/JPY: 4-hour
Next up on today’s roster in USD/JPY ranging like a Range Rover on the 4-hour chart. Right now, it looks like the pair just bounced off the support level. Will it hold? Maybe. A bullish candlestick (i.e. marubozu) may mean that the pair is on its way back up to 80.00. However, a break below last week’s low around 79.15 could be a sign that USD/JPY will soon trade around 78.80 again.
AUD/JPY: 4-hour
Lastly, we have AUD/JPY just chillin’ like ice cream fillin’ at the rising trend line on the 4-hour time frame. Stochastic indicates that the pair is already oversold. Time to go long? Err… If you ask me, I’d rather wait for the pair to break out of its consolidation around 80.00 and 80.75. The last four dojis that materialize seem to indicate that traders are still indecisive on the pair. But then again, that’s just me.
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.
