An entire week has already gone by and USD/JPY is still stuck within its narrow 50-pip range! Will this bad boy ever break out? With a solid resistance zone at around 79.70 and strong support at around 79.20, it certainly presents a mouth-watering setup. If you think the pair will continue to consolidate, look to play bounces off these areas of interest. On the other hand, if you think a breakout is in the works, wait for it to make a clean break past these levels before you act!
Like Timothy Bradley’s controversial win over Manny Pacquiao, NZD/USD has been trending in recent days. Just take a look at that sweet uptrend that has formed! Yesterday, it found support on the rising trend line, which suggests we could see another strong push up the charts. But be careful, fellas, because the pair will have to break through the .7800 major psychological handle for it to forge a new high.
Rounding up today’s trio is EUR/GBP, which presents potential resistance at the .8100 handle. If you take a close look, this area actually lines up really well with the 61.8% Fibonacci retracement level and a former rising trend line. That’s a triple threat, folks! But just to play it safe, I suggest y’all wait for confirmation for candlesticks. You don’t wanna get burned by a breakout, do ya?!
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.