It looks like GBP/JPY has been trading higher and higher. Just a while ago, it bounced off support at the rising trend line. What’s your call? Do you think we’ll see it take another shot at 154.00? The bullish divergence which Stochastic is showing seems to suggest so. But be careful, ayt? A close somewhere near 153.00 could mean that we’ll soon see the pair drop to 152.50!
There’s also a similar setup on AUD/USD if you prefer trading comdolls. The hourly timeframe shows that the pair is now at the rising trend line. If you’re feeling bullish for it, waiting for a reversal candlestick to close around .9250 may be a good idea before pulling the trigger on a long. However, if you’re feeling bearish for the pair, keep your fingers crossed for a trend line break.
Last and certainly not the least, here’s USD/CHF sporting what looks like a falling wedge on the 4-hour timeframe. As though this chart pattern isn’t bullish enough, you’d notice that it materialized right smack at the Fibonacci retracement levels! Now, don’t get crazy buying the pair, ayt? Who knows, there may still be enough bears to push it down to .9300!
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.