Remember GBP/USD‘s rising channel that I pointed out a couple of days ago? Well, it had just broken below its mid-channel support! This puts the 1.5100 handle under the spotlight as the major psychological level is in line with the bottom of the channel on the daily chart. It also doesn’t hurt that Stochastic is now flirting with the oversold region. I don’t know about you, but I’m gonna keep my eyes on this setup for buying opportunities!
This setup is so sweet that Ben&Jerry’s should seriously name an ice cream after it. EUR/USD just bounced from the big 1.3000 psychological level, which is sitting right near a 61.8% Fib on the 4-hour chart. And mother of pips does that bullish divergence on the same chart look hot. A stop below the former support could get you a good risk ratio if you aim for the pair’s previous highs near the 1.3400 area.
Here’s one for our girl Happy Pip who’s also selling the Aussie this week! AUD/JPY is lollygagging on what looks like a descending triangle on the 4-hour chart. If the 91.00 handle holds as resistance, then look for a possible test of its 89.25 support. Alternatively, you could wait for a downside break of the said support if you think that the comdoll bears still have room to attack.
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.