GBP/USD: 4-hour
First up for today is a hot range action on Cable. The pair is meeting a strong resistance at the 1.5700 handle while Stochastic is sitting in the overbought territory. A stop above the range could make for a good reward-to-risk ratio especially if you aim for the 1.5500 area range support.
EUR/JPY: Daily
Can’t get enough of the euro? Here’s one for ya! EUR/JPY found support just below the 95.00 mark, but it looks like it’s about to face resistance at the 97.00 handle. The major psychological handle is a former support area on the daily chart as well as a potential 38.2% Fib resistance on the downtrend. If the 38.2% Fib doesn’t play out, the next possible resistance is at the 61.8% Fib near the 99.00 handle.
USD/CAD: 4-hour
USD/CAD looks primed for a drop to parity! Well, at least until it breaks below the 1.0100 area. The major psychological handle is holdin’ like a boss on USD/CAD’s 4-hour falling channel while Stochastic is adding to the bullish vibes by hanging in the oversold territory. Will the Loonie bulls drag the pair all the way to the channel support near parity, or will the bears push it back to the 1.0150 area?
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.
